Twilio Slides as Insider Selling and Downgrades Rattle Bulls

Twilio ( (TWLO) ) has fallen by -9.80%. Read on to learn why.

Twilio shares fell 9.80% over the past week as a wave of cautious signals from Wall Street and insiders weighed on sentiment, despite the stock still trading near the upper end of its recent range. The pullback comes after a strong run-up that left the valuation looking stretched to some analysts, prompting investors to lock in profits ahead of the next earnings report due in February.

On the research side, views on Twilio have become more mixed. RBC Capital reiterated a Sell rating with a $100 price target, well below the recent $120–$130 trading area, while Piper Sandler downgraded the stock from Overweight to Neutral even as it nudged its target up to $148, arguing that Twilio’s growth re-acceleration and free cash flow upside may be largely priced in. Other firms, including Rosenblatt and Citizens JMP, remain bullish with higher targets and the broader analyst consensus still sits at “Moderate Buy” with an average target around $146, but the downgrade headlines have clearly cooled near-term enthusiasm.

Investor anxiety has also been amplified by bearish trading activity and insider selling. Options flow turned negative, with put volume running above normal levels and the put/call ratio topping 2.0, signaling an uptick in hedging or speculative downside bets. At the same time, insider sentiment has turned negative, highlighted by a director’s sale of 1 million shares worth roughly $129 million in the past month. Even though Twilio has shown fundamental improvement — growing quarterly revenue to $1.3 billion and swinging from a loss to a modest profit year over year — the combination of high expectations, insider selling, and cautious analyst commentary has driven the stock’s 9.80% slide this week as traders reposition ahead of the next catalyst.