Why Twilio Stock Was Down on Thursday
Shares of Twilio (NYSE: TWLO) are falling today, down by 7% as of 11 a.m. ET. That slump has added to significant short-term losses for the cloud communications services stock, which has declined over 75% so far in 2022. The move downward was sparked by increasing worries about a recession on the way, along with specific concerns regarding Twilio's upcoming earnings report.
The main factor dragging the stock lower was pessimism on Wall Street. The latest inflation reading showed that prices continued to stubbornly rise in September. Investors had been hoping that milder inflation might convince the Federal Reserve to ease up on its interest rate increases.
Today's report makes that move less likely, and so the risk of a recession is still top of mind for investors. That prospect tends to disproportionately hurt the stocks of companies like Twilio, given the fact that it is generating operating losses even in today's high-growth environment.
Source Fool.com
