2023-05-24 15:15:13 ET
Twilio ( NYSE: TWLO ) shares rose nearly 5% on Wednesday as investors rushed into the name despite no discernible company-related news.
More than 6.9M shares had changed hands just after 3 p.m. EST, more than the average daily volume of just over 4.7M shares.
Earlier this month, Twilio ( TWLO ) issued a weaker-than-expected outlook for the upcoming quarter.
The company now anticipates second-quarter sales to be between $980M and $990M, below the consensus of $1.05B. Adjusted earnings are forecast to be between 27 and 31 cents per share, compared to the consensus of 29 cents per share.
Several investment firms downgraded the communications software company after the quarterly guidance, citing "near-term" challenges.
"While we remain positive on TWLO's leadership in [cloud communications platform as a service] and potential to become a B2C [customer relationship management] platform with Engage, we expect ... growth to remain subdued in the near-term and thus lower our estimates," Mizuho Securities analyst Siti Panigrahi wrote in an investor note.
Goldman Sachs also downgraded Twilio ( TWLO ), along with other software stocks, citing "limited" catalysts.
More on Twilio
- Twilio's IoT business unit to be acquired by KORE to build first 'IoT Hyperscaler'
- Intuit, ZoomInfo, Twilio may see impact from SVB fallout, but likely 'transient': analyst
- Is Twilio Stock A Good Long-Term Investment?
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Why did Twilio stock jump today? Thank heavy volume