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Twilio (TWLO) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Twilio (TWLO - Free Report) closed at $157.44, marking a -1.39% move from the previous day. This change lagged the S&P 500's 0.04% loss on the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the company had gained 0.84% over the past month. This has lagged the Computer and Technology sector's gain of 1.92% and the S&P 500's gain of 2.67% in that time.

Twilio will be looking to display strength as it nears its next earnings release. In that report, analysts expect Twilio to post earnings of -$0.23 per share. This would mark a year-over-year decline of 560%. Meanwhile, our latest consensus estimate is calling for revenue of $861.73 million, up 46.06% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.52 per share and revenue of $3.8 billion. These totals would mark changes of -108% and +33.65%, respectively, from last year.

Any recent changes to analyst estimates for Twilio should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Twilio is currently sporting a Zacks Rank of #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow TWLO in the coming trading sessions, be sure to utilize Zacks.com.


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