Twilio stock rose Wednesday following a report that said activist hedge fund Legion Partners has met with the software company several times and pushed for divestitures and board changes.
The stock (ticker:
TWLO
) was up 5.3%, to $65.96 on Wednesday.
Legion, known for its role in the
Bed Bath and Beyond
shake-up, has held at least six meetings over the past few months to discuss ways to improve its cost structure and strategic alternatives, a report by The Information said, citing people familiar with the matter.
Twilio declined to respond to a request for comment from Barron’s.
Twilio, which makes tools for companies to communicate with their customers, has had a tough time. In May, the company offered its fourth straight quarter of below-consensus revenue guidance, according to FactSet data. Management has said a difficult economic environment is hurting its average selling prices, while usage by crypto companies has fallen from last year’s peak. Its shares are down 42% over the past year.
Oppenheimer analysts Param Singh, Ittai Kidron, and team on Tuesday said they see the involvement of Legion as a potential positive catalyst for Outperform-rated Twilio.
Write to Karishma Vanjani at [email protected].
Read the full article here
