Why These 2 Growth Stocks Crashed Wednesday Morning
Investors got the good news that they wanted on the inflation front, as the Consumer Price Index rose by 0.4% in April. The resulting 4.9% rise in the CPI over the past 12 months was slightly lower than expected, and stock index futures pushed higher in premarket trading early Wednesday as a result.
However, earnings season continued to deliver some disappointments for investors. Airbnb (NASDAQ: ABNB) and Twilio (NYSE: TWLO) have seen extremely strong growth rates in the past, but their latest financial releases showed that they've started to see signs of slowing in the pace of revenue gains. That weighed on the two stocks, and as you can see below, shareholders might need reassurance to regain confidence in their future prospects.
Shares of Airbnb were down 14% in premarket trading Wednesday morning. The alternative accommodation provider released first-quarter financial results late Tuesday that were generally strong but that also indicated that slower growth was likely ahead.
Source Fool.com
Twilio Inc Stock
Our community is currently high on Twilio Inc with 16 Buy predictions and 3 Sell predictions.
As a result the target price of 67 € shows a positive potential of 23.62% compared to the current price of 54.2 € for Twilio Inc.
