Twilio slips after HSBC cuts to 'reduce' on AI monetization doubts
TWLO•Twilio shares fell 3.2% in premarket trading after HSBC downgraded the stock to “reduce,” citing doubts about the company capturing higher-margin AI software revenue. Shares had risen more than 110% year to date through the previous close.
1. HSBC downgrades Twilio
HSBC said it retains a premium for Twilio’s AI optionality but sees a negative risk-reward after the recent rally. “Muse is directionally positive, but we see limited evidence that Twilio will capture higher-margin AI software layer,” HSBC said.
2. Analyst ratings and shares
Twilio shares were down 3.2% at $290.11 in premarket trading. LSEG-compiled data showed 27 of 32 brokerages rated the stock “buy” or higher, three rated it “hold” and two rated it “sell”; the median price target was $270.
