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Twilio (TWLO) Stock Sinks As Market Gains: What You Should Know

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Twilio (TWLO - Free Report) closed the most recent trading day at $394.16, moving -1.5% from the previous trading session. This change lagged the S&P 500's daily gain of 0.13%.

Prior to today's trading, shares of the company had gained 19.93% over the past month. This has outpaced the Computer and Technology sector's gain of 6.68% and the S&P 500's gain of 2.16% in that time.

TWLO will be looking to display strength as it nears its next earnings release. In that report, analysts expect TWLO to post earnings of -$0.14 per share. This would mark a year-over-year decline of 255.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $597.74 million, up 49.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.18 per share and revenue of $2.53 billion, which would represent changes of -178.26% and +43.36%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TWLO. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TWLO currently has a Zacks Rank of #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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