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

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Twilio (TWLO - Free Report) closed at $389 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.55%.

Coming into today, shares of the company had gained 8.17% in the past month. In that same time, the Computer and Technology sector gained 5.24%, while the S&P 500 gained 3.99%.

Investors will be hoping for strength from TWLO as it approaches its next earnings release, which is expected to be February 17, 2021. On that day, TWLO is projected to report earnings of -$0.08 per share, which would represent a year-over-year decline of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $454.64 million, up 37.26% from the prior-year quarter.

Any recent changes to analyst estimates for TWLO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.14% higher within the past month. TWLO is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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