1 Reason to Buy Twilio Stock, and 1 Reason to Sell
Few stocks have been more emblematic of the boom and bust of the market over the past few years than Twilio (NYSE: TWLO). The cloud communication platform's stock rocketed to $443 in early 2021, only to fall more than 90% by late 2022. After a better start to 2023, Twilio trades for $66 as of this writing.
Stock market sentiment aside, there were business reasons for the rise and fall of the stock, even if those movements were exaggerated. Investors considering buying or selling Twilio stock today should consider the future potential of the business. Let's take a look at one reason to buy Twilio stock and one reason to sell.
In 2020 and 2021, the story of each quarter was the same: Revenue and customer growth were impressive, while the company remained unprofitable. As the calendar changed to 2022, the profitability trends worsened, and the company began burning cash. This trend, along with the bear market, led to the 90% drawdown in Twilio's stock price.
Source Fool.com
