Bearish Sentiment Emerges in Twilio Options Trading

Twilio's bearish stance is highlighted by high put options activity. With only 22% of trades bullish, investor sentiment suggests a cautious outlook for the stock's future performance.

Date: 25-03-2025

AI Rating: 4

Twilio (NYSE: TWLO) is currently experiencing a bearish sentiment among investors, as reflected in the options trading activity. Out of 9 trades, only 22% were bullish, while a significant 66% showed bearish expectations. This indicates a lack of confidence from larger investors regarding the stock's future performance.

**Projected Price Targets** suggest an active focus around a price range of $90.00 to $112.00 over the last three months. The high volume of puts, which totaled $337,845 compared to $171,155 for calls, reinforces this bearish outlook.

This shift in sentiment is evident from the various options trades being executed. For instance, significant bearish put options have been processed with expiration dates extending into 2025, signaling that investors are preparing for potential declines or uncertainty ahead.

Furthermore, Twilio's current market standing shows a share price of $105.46, down -0.76%. The RSI indicators portray a neutral positioning, which adds another layer of complication as it is situated between overbought and oversold territories. The upcoming earnings report is also highly anticipated in about 42 days, which may further influence investor sentiment.

From a professional analyst standpoint, ratings for Twilio have been mixed. While an analyst at Morgan Stanley upgraded Twilio to an 'Overweight' status with a price target of $160, conflicting opinions have also emerged. An RBC Capital analyst downgraded it to 'Underperform' with a much lower price target of $75, presenting mixed messages for potential and current investors.

In summary, the bearish sentiment towards Twilio is underscored by a higher volume of put options and mixed analyst recommendations. This environment could potentially lead to downward pressure on Twilio's stock price as investors maintain a cautious outlook amid uncertain conditions.

Stocks: TWLO