Twilio Stock Dips After Guidance Disappoints

Twilio stock is headed lower despite the company’s top-line beat for the first quarter

Twilio Inc (NYSE:TWLO) stock is 5.1% lower to trade at $60.14 this morning, in the wake of the software company’s latest quarterly report. While first-quarter earnings and revenue beat expectations, investors are instead focused on Twilio’s second-quarter guidance, which came in worse than anticipated.

At least four analysts adjusted their price targets in response, the lowest coming from Macquarie, down to $63 from $69. There’s rampant activity in the options pits, too. So far, 14,000 calls and  8,799 puts have been exchanged, volume that’s six times the amount typically seen at this point. The weekly 5/31 64-strike call is the most popular, with new positions being bought to open. 

Today’s pullback could have been in the cards, considering the shares’ 14-day Relative Strength Index (RSI) sat up at 69, on the cusp of “overbought” territory. On the charts, TWLO is set to snap a five-day win streak and was turned away by its 200-day moving average. The security now sports a 21.3% year-to-date deficit. 

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