Twilio Plunges 6.31% as $740M Volume Slides 58% to 129th in Market Activity

Twilio (TWLO) closed down 6.31% on August 11, 2025, with a trading volume of $0.74 billion, a 58.13% decline from the previous day. The stock ranked 129th in market activity amid heightened volatility.

The selloff coincided with growing skepticism toward AI-driven coding tools, which have sparked concerns about developer trust in automated workflows. As a cloud communications platform reliant on developer engagement, Twilio faces indirect pressure as enterprises reassess AI toolchains. Sector-wide unease, exacerbated by recent updates from Google and Anthropic, amplified risk aversion among investors.

Technical indicators highlight extreme bearish momentum, with RSI at 22.20 (oversold) and MACD showing bearish divergence. The stock’s price fell to 73% of its Bollinger Bands lower boundary, while key resistance levels at the 30-day moving average ($124.07) and 200-day moving average ($110.32) remain untested. Options activity suggests speculative positioning, with contracts like TWLO20250815C96 and TWLO20250815C98 attracting attention for their high implied volatility and leverage ratios.

Backtest analysis of Twilio’s performance following the August 11 plunge revealed mixed signals. Institutional investments in early 2023, including $3.12 million by First American Trust FSB, underscored long-term confidence. Analysts maintained a "Moderate Buy" rating with a $126.74 price target, while technical levels near the 50-day moving average ($121.93) suggested potential support. However, emotional selloff dynamics observed in market analysis indicated overreactions could create short-term buying opportunities.

A strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day yielded a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18% gain. This highlights the role of liquidity concentration in short-term performance, particularly during volatile periods, as high-volume stocks demonstrated resilience and profitability despite market fluctuations.