Marqeta, MongoDB, Twilio, Asana, and BILL Stocks Tumble—Key Information You Should Be Aware Of

Market Overview: Recent Shifts and Sector Performance

During the morning trading session, several stocks experienced declines as investors rotated out of the technology sector, leading to profit-taking after a period of strong gains.

This movement reflected a broader trend, with high-growth tech companies facing notable losses. The Nasdaq index, in particular, recorded the steepest drop among major benchmarks. Analysts noted that many traders were cashing in on profits, especially from stocks tied to artificial intelligence, which had previously enjoyed significant momentum. This shift marked a change in investor priorities, as capital flowed away from technology stocks.

Meanwhile, defense companies benefited from this reallocation of funds. Shares in the sector surged following President Trump’s proposal for a substantial $1.5 trillion defense budget for 2027. Leading defense contractors saw significant gains—Northrop Grumman rose by more than 10%, while Lockheed Martin advanced nearly 8%. These increases helped offset the weakness in tech, keeping the S&P 500 relatively stable. The move into industrials was further supported by a rebound in oil prices, which helped steady the energy market.

Market reactions to news can sometimes be exaggerated, and sharp declines may create attractive entry points for investors seeking quality stocks.

Stocks Most Affected

• Marqeta (NASDAQ:MQ), a payments software provider, dropped 4.1%.

• MongoDB (NASDAQ:MDB), specializing in data storage, declined by 3.5%.

• Twilio (NYSE:TWLO), a communications platform company, saw its shares fall 4.3%.

• Asana (NYSE:ASAN), which offers project management software, slipped 2.7%.

• BILL (NYSE:BILL), a finance and accounting software company, dropped 2.3%.

Focus on Twilio (TWLO)

Twilio’s stock is known for its volatility, having experienced 24 separate swings of more than 5% over the past year. Today’s price movement suggests that while the news is significant, it does not fundamentally alter the market’s overall view of the company.

The most notable surge in the past year occurred 12 months ago, when Twilio’s shares soared 22.8% after the company presented strong financial projections at its 2025 Investor Day, including new details about its artificial intelligence initiatives.

Twilio’s Financial Outlook and Analyst Sentiment

For the fourth quarter of 2024, Twilio anticipates achieving low double-digit revenue growth, an improvement over its previous guidance of high single-digit growth. The company also expects to report positive operating income on a GAAP basis—a rare milestone—building on recent quarters where it nearly broke even. Looking ahead, Twilio projects an adjusted operating margin of up to 22% by 2027, surpassing Wall Street’s expectations, and potentially generating $3 billion in free cash flow over the next three years. These forecasts are underpinned by management’s belief in sustained double-digit sales growth, fueled by expanding AI opportunities. Additionally, Twilio has announced a $2 billion share repurchase program to return value to shareholders.

Following these developments, Baird analyst William Power upgraded Twilio’s rating from Hold to Buy, expressing greater confidence ahead of the company’s Q4 2024 earnings release. Power highlighted Twilio’s strong position in the AI sector, noting, “Notably, 9,000 AI companies and 90% of Forbes 50 AI startups use Twilio as their customer engagement platform, and AI-related firms spent $260 million with Twilio in the past year.” The analyst also raised the price target from $116 to $160, suggesting a potential 40% upside.

Since the start of the year, Twilio’s stock has declined by 2.5%. At $134.85 per share, it currently trades 9.1% below its 52-week high of $148.35, set in January 2025. An investor who purchased $1,000 worth of Twilio shares five years ago would now have an investment valued at $374.29.

Industry Perspective: The Rise of AI-Driven Software

The 1999 book Gorilla Game accurately predicted the dominance of Microsoft and Apple in the tech sector by identifying early platform leaders. Today, enterprise software companies that are integrating generative AI are emerging as the new industry giants.