Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Twilio Stock Dips After Barclays Downgrade to Equal Weight on Slowing Digital Economy

Stock Markets Jun 02, 2022 09:56
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Senad Karaahmetovic

Barclays analyst Ryan MacWilliams downgraded Twilio (NYSE:TWLO) to Equal Weight from Overweight with a $110.00 per share price target, down from the prior $175.00.

The analyst believes that Twilio’s core API business potentially faces challenges going forward due to a slowing digital economy. Moreover, MacWilliams “had hoped to see better progress with Segment/Engage at this point.”

“With this backdrop in mind, it is possible macro headwinds could put Twilio to a decision: either maintain top-line performance with lower gross margin international SMS revs. or pivot to improved profitability with lower rev. Growth,” the analyst said in a client note.

Still, the analyst says he could be wrong if Twilio manages to accelerate organic growth in Q3. This could prompt investors to buy Twillio stock as shares would simply be “too cheap at 6x CY23 eV/gross profit and potentially 30%+ organic growth.”

Twilio stock price is down 1% today.

Twilio Stock Dips After Barclays Downgrade to Equal Weight on Slowing Digital Economy
 

Related Articles

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