Twilio slips after HSBC cuts to 'reduce' on AI monetization doubts

By Reuters News

** Shares of customer engagement platform Twilio TWLO.N dip 3.2% to $290.11 in premarket trading

** HSBC downgrades stock to 'reduce'; says it retains a premium for Twilio's AI optionality, but sees negative risk reward post recent rally

** "Muse is directionally positive, but we see limited evidence that Twilio will capture higher-margin AI software layer" - HSBC

** 27 of 32 brokerages rate the stock "buy" or higher, 3 "hold" and 2 "sell"; their median PT is $270 - LSEG-compiled data

** Up to last day's close, shares up more than 110% YTD

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