Twilio shares fall 9.06% after-hours amid software sector sell-off driven by AI integration concerns, shifting investor focus from traditional SaaS providers.

Twilio Inc. fell 9.06% in after-hours trading amid a broader selloff in the software sector driven by concerns over artificial intelligence disrupting traditional SaaS business models. While a partnership with Genspark to power its AI calling agent was announced, the sector-wide decline—highlighted by a 0.8% drop in the Nasdaq Composite—reflected institutional repositioning toward AI-integrated companies with defensible moats. Twilio’s 9.3% decline aligned with declines in peers like Unity, Intuit, and Freshworks, underscoring market skepticism about the competitive sustainability of traditional communications platforms in an AI-driven landscape. The Genspark collaboration, though technically positive, was overshadowed by macroeconomic sentiment and sector-wide risk-off positioning.