TWLO - Twilio Takes Another Step Lower After Management Missteps
2024-03-07 11:20:07 ET
Summary
- Twilio's stock fell 5.9% after announcing an operational review and an upsized share buyback program.
- The market is unhappy with Twilio's growth slowdown and profitability issues.
- Management plans to focus on bringing the Twilio Segment unit to profitability and buy back $2 billion worth of stock.
- But the firm should be focusing on more important matters at this time.
March 5 was not the most pleasant day to be a shareholder of tech firm Twilio ( TWLO ). Shares of the company closed down 5.9% after management announced the results of an operational review of one of its operating units and after the company announced an upsized share buyback program. The path management has set the operating unit on should be construed as positive in and of itself because it points to a realistic timeline for achieving breakeven. And in general, the market perceives share buybacks as value additive for shareholders. So I found it interesting that the stock would fall so much in response to these news items....
Twilio Takes Another Step Lower After Management Missteps