Just two days ago, Twilio (NASDAQ:TWLO) rolled out its earnings report. The reaction from investors might comfortably be described as “catastrophic,” as Twilio lost over 12% of its value after the report emerged. Now, Twilio is down a further 3% at the time of writing due to an analyst’s opinion. It wasn’t the only company to take it on the chin, though, as Goldman Sachs cut a swath through tech stocks.
The word from Goldman Sachs analyst Kash Rangan hit not only Twilio but also RingCentral (NYSE:RNG), TechTarget (NASDAQ:TTGT), and Bentley Systems (NASDAQ:BSY). Rangan cut Twilio, Bentley, and RingCentral down from Buy to “neutral” and lowered TechTarget from “neutral” to Sell. Rangan hit each for different reasons but left each trending downward in his wake.
Twilio took its hit due to slowing growth from its Data and Applications sector in the first quarter’s earnings report. Meanwhile, RingCentral faced stiffening competition from both Zoom (NASDAQ:ZM) and Microsoft (NASDAQ:MSFT). Bentley Systems took its cut from issues of Chinese volatility—the switch from Zero-COVID to Not Wreck The Economy hasn’t always been smooth—and the impact on its revenue growth potential. Finally, TechTarget lost its rating thanks to “continued pressure in enterprise IT” and the impact that would have on its own bottom line.
While all four stocks were down in Thursday afternoon trading, TechTarget took the lightest hit. It also has the second-lowest upside potential at 21.64% thanks to an average price target of $36.71, and it’s rated a Hold by analyst consensus. Meanwhile, RingCentral offers the best upside and the best rating, though it took the biggest losses this afternoon. It’s rated a Moderate Buy and offers 59.19% upside potential thanks to an average price target of $46.50.
