Twilio Inc TWLO stock is down about 20% year-to-date.
The San Francisco-based company’s struggle persists with sluggish single-digit growth and increased customer turnover, compounded by leadership changes, including the departure of CEO Jeff Lawson.
Throughout 2023, the cloud communications firm underwent a business overhaul, modifying its cost and capital structure. However, the start of 2024 saw further restructuring, marked by the founding CEO’s resignation and promises of strategic reviews, particularly regarding Segment.
Related: Twilio Announces Retirement of Byron Deeter and Board Declassification
Despite these efforts, there’s a prevailing sentiment that while Twilio has undergone significant transformations, its core trajectory remains unchanged. This realization underscores the belief that Twilio’s days as a growth-oriented business are now behind it.
Technical indicators from Twilio stock chart appear to validate the fundamental struggles Twilio is going through.
Twilio stock is approaching a so-called Death Cross, where the 50-day simple moving average (SMA) is about to cross under the 200-day SMA, signaling bearish sentiments.
Going further into the technical analysis, several indicators point towards a strongly bearish trend. The share price remains below its 5, 20, and 50-day exponential moving averages, indicating downward momentum, although there’s slight buying pressure evident.
Additionally, the Moving Average Convergence Divergence (MACD) indicator stands at -0.40, further reinforcing the bearish sentiment. Twilio’s Relative Strength Index (RSI) of 48.90 indicates an oversold condition.
However, the Bollinger Bands are narrnarrowing,owing which often indicates a squeeze. It thus becomes pertinent to take a peek at the short interest for the stock.
Short interest for Twilio stock is currently at 1.88% of float with 1 day to cover — both comfortable readings, weakening any arguments for a short squeeze potential here.
Overall, the technical analysis paints a bleak picture for Twilio stock, signaling a bearish outlook in the near term.
This ominous technical pattern often indicates a forthcoming downturn. Twilio’s recent struggles, including sluggish growth, leadership turnover, and ongoing restructuring efforts, have contributed to apprehension among investors.
The looming prospect of a death cross underscores the challenges facing Twilio and adds further uncertainty to its future performance.
Read Next: Unpacking the Latest Options Trading Trends in Twilio
Image: Rblfmr/Shutterstock.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
