Why Twilio Inc. (TWLO) Crashed on Friday

We recently compiled a list of the These 10 Firms Were Heavily Hit on Friday. In this article, we are going to take a look at where Twilio Inc. (NYSE:TWLO) stands against the other stocks.

Wall Street’s main indices finished mixed on Friday, with the tech-heavy Nasdaq emerging as the sole gainer, rallying 0.41 percent. The Dow Jones, for its part, decreased by 0.37 percent, while the S&P 500 was little changed, dipping 0.01 percent.

Ten companies mirrored a mostly pessimistic broader market.

To come up with this list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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Twilio Inc. (NYSE:TWLO)

Twilio Inc. (NYSE:TWLO) saw its share prices fall by 15 percent on Friday to end at $125.17 each as investor sentiment was dampened by the company’s weak outlook guidance for the current quarter while shunning news of improved earnings performance last year.

In its earnings release on Friday, Twilio Inc. (NYSE:TWLO) said it expects earnings per share for the current quarter to settle between 88 cents and 93 cents, missing analysts’ consensus of 99 cents.

The company also pegged revenues to end between $1.13 billion and $1.14 billion, representing growth of 8 to 9 percent.

During the last quarter, Twilio Inc. (NYSE:TWLO) narrowed its net losses by 96 percent to $12.47 million versus the $365 million registered in the same period last year, despite 11 percent higher revenues at $1.194 billion versus $1.075 billion year-on-year.

For the full year of 2024, net loss shrunk by 89 percent to $109 million from $1.01 billion in 2023.

Overall TWLO ranks 3rd on our list of the stocks that crashed on Friday. While we acknowledge the potential of TWLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for other AI stocks that are as promising as TWLO but that trade at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.