Breaking News
Investing Pro 0
Black Friday SALE: Up to 50% OFF InvestingPro+ CLAIM OFFER

Another Show-Me Story: Twilio Stock Cut to Hold at Argus

Stock Markets Aug 10, 2022 10:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
TWLO
+7.19%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
META
+7.89%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TWTR
+0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SNAP
+4.94%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic

An Argus analyst cut the rating on Twilio (NYSE:TWLO) to Hold from Buy in response to weak Q3 guidance that the company offered last week.

The outlook implies a top-line growth of 31%, which compares to the revenue growth of over 60% in 2021.

“With tough comps ahead, the forward growth outlook is likely to continue to move lower,” the analyst told clients in a note.

The analyst also took note of signs that imply slowing growth among existing customers.

“At this point, we believe it prudent to downgrade the stock to HOLD until the company's revenue growth and operating loss prospects come into clearer focus,” the analyst added.

The new stock rating for Twilio also corresponds to other social media stocks, including Meta Platforms (NASDAQ:META), Twitter (NYSE:TWTR), and Snap (NYSE:SNAP), which are Hold-rated by Argus.

“The combination of changes to Apple's privacy policy on iOS devices and the potential for additional weakness in consumer discretionary spending in an inflationary environment all argue for caution regarding the pace of growth in social media digital advertising. Twilio would be impacted if its clients in the online space were forced to reduce spending on Twilio's solutions set because their own revenues were weakening,” the analyst also said.

Argus still has a long-term Buy rating on Twilio.

Another Show-Me Story: Twilio Stock Cut to Hold at Argus
 

Related Articles

Today's most important upgrades
Today's most important upgrades By Investing.com - Nov 30, 2022

By Davit Kirakosyan BofA upgraded Consolidated Edison (NYSE:ED) to Neutral from Underperform and raised its price target to $95.00 from $78.00 following substantial updates to the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email