According to Stifel, there will be trouble ahead for Twilio after the communications software company issued poor guidance. Analyst J. Parker Lane downgraded Twilio’s stock to buy and more than halved its target price, citing the company’s recent earnings report released on Thursday. Twilio reported falling revenue but gave its current quarter forecast below Wall Street expectations. “From a top perspective, we see a more moderated expansion rate (123% DBNE vs 135% in 2Q21, 127% in 1Q22), forecasting organic revenue growth (29-30) % in 3Q22 versus 33% in 2Q22 and 35% in 2Q22), and the macro environment is more uncertain as are near-term risk signals,” Lane wrote in a Friday note. “More importantly, with non-GAAP gross margin retreating to 51.0% in Q222 and the company forecasting a larger-than-consensus operating loss for Q322, the deadline to achieve As a result, we will move to the sidelines until we get a clearer picture of progress towards a 60% surplus GM and OM leverage,” said Lane. continue. Stifel reduced its share price target by 55% to $90 per share from $200. The new price target is about 8% below Thursday’s closing price of $98.19. Twilio stock fell more than 8% in pre-market trading Friday. Twilio’s stock has come under pressure, down more than 60% this year, as investors continue to discount unprofitable tech companies. Twilio is dealing with the uncertain macro backdrop that is weighing on its businesses in the crypto, consumer-on-demand, and social sectors. “Overall, we believe the short-term picture for TWLO looks less clear and investor skepticism around the medium/long-term margin bracket is likely to weigh on the stock until the company delivered consistent, significant improvements,” Lane wrote. “We still believe in the inherent value and differentiation of the Twilio platform, but are looking for more long-term signs of growth,” added Lane. — Michael Bloom of CNBC contributed to this report.