San Francisco-based Twilio (NYSE:TWLO) is known to be a leader in customer engagement software. This is undoubtedly a high-conviction business sector, but TWLO stock is a no-go as it continues to test new 52-week lows.
This isn’t to suggest it’s all negative news with Twilio lately. For instance, the company recently brought two highly qualified individuals on board. Reportedly, they’ll take on the newly created roles of Chief Digital Officer and Chief Privacy Officer. So, it could be argued Twilio is in expansion mode.
Plus, the company has an earnings event coming up on May 4. Still, even if Twilio posts blockbuster first-quarter results, it won’t likely be enough to get TWLO stock back to 2021 levels.
Last year was pretty good for Twilio’s shareholders until the train went off the tracks in the fourth quarter. Nowadays, $300-plus stock prices are old news, and the Twilio share price might actually fall below $100 soon.
It’s difficult to pinpoint a single catalyst to blame for the sharp drawdown in TWLO stock. However, it’s likely the market’s negative sentiment toward growth tech stocks has been a contributing factor.
Interestingly, this hasn’t deterred analysts on Wall Street from issuing price targets of at least $300. For example, Oppenheimer analyst Ittai Kidron anticipates the Twilio share price will reach $380.
Furthermore, as InvestorPlace contributor Muslim Farooque reported, analysts at Cowen assigned a $300 price target on TWLO stock. Additionally, Farooque noted Stifel analysts are modeling a $300 share price for Twilio.
Even if those figures represent price-target cuts, they’re still quite ambitious. Currently, the Twilio share price would have to double — and then some — just to reach $300.
Therefore, informed investors must conduct their own due diligence and come up with their own price targets. The idea is to be realistic, so don’t just buy into the analysis of the experts. There’s no denying TWLO stock is in free fall, so for the time being, it’s probably wise just to stay on the sidelines and see what happens next.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.