Twilio Inc. downgraded by HSBC from ‘Hold’ to ‘Reduce’

Twilio Inc. (NYSE:TWLO) has been downgraded by HSBC from a ‘Hold’ rating to ‘Reduce,’ with the firm also lowering its price target for the company’s shares. HSBC shifts its valuation approach for Twilio from Price to Sales (P/Sales) to Price to Earnings (P/E) ratio, citing a lower growth rate and steep valuation compared to similar companies. Analysts project continued losses through 2028, and warn of downside risk if investor sentiment shifts towards stricter adherence to GAAP metrics.