Twilio Stock Brushes Off Barclays Downgrade

TWLO has shed more than 71% over the last nine months

Digital Content Manager
Jun 2, 2022 at 10:07 AM
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Twilio Inc (NYSE:TWLO) is down 1.5% to trade at $105.81 at last check, brushing off a Barclays downgrade to "equal weight" from "overweight," as well as a price target cut to $110 from $175. The brokerage highlighted potential challenges in the core Application Programming Interface (API) business amid a slowing digital economy, and added the company will have to choose between maintaining its top-line performance with lower margins, or improving profitability with lower revenue growth.

This denotes a shift in sentiment, given the brokerage bunch was majorly optimistic on Twilio stock coming into today. In fact, 17 of the 19 analysts in question called TWLO a "buy" or better, while the 12-month consensus target price of $209.38 is a lofty 105.5% premium to current levels. 

The security has struggled on the charts of late. Shares have been testing a floor at the $90 level since logging a May 12, two-year low of $87.69, as they struggle with a ceiling at the $110 mark, and overhead pressure from the 30-day moving average. In the past nine months, TWLO has shed 71.5%.

Now could be a good opportunity to bet on Twilio stock's next move with options. This is per its Schaeffer's Volatility Scorecard (SVS) rating of 73 out of 100. In simpler terms, the equity has tended to outperform options traders' volatility expectations over the last year.




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