2023-05-15 06:03:00 ET
Shares of Twilio (NYSE: TWLO) , a provider of cloud-based communications tools and services for developers, were pummeled last week. The stock fell more than 12% during the five-day period. This decline adds to an already disastrous return over the last 12 months. Shares have now fallen more than 50% during this period.
Most of last week's tumble came after the tech company reported its first-quarter results. Worse-than-expected second-quarter revenue guidance included in the update spooked investors. Adding to the reasons to be discouraged, over a dozen analysts cut their 12-month price targets for the stock after they digested the information in the report.
There are times when it makes sense to, as Warren Buffett has said, be "fearful when others are greedy..." But this may not be one of those times. Indeed, a good case can be made for Twilio stock still being overvalued, even after the stock's huge decline.
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Down 50% in 12 Months and Twilio Stock May Still Be Overvalued