What Happened to US Software Stocks That Lost 2 Trillion Won in Just One Day?

Twilio Inc. (TWLO) shares plunged 9% on the New York Stock Exchange, closing at $123.72, wiping out roughly $1.55 billion in market capitalization—about ₩2.1 trillion—in a single day. Investor selling intensified, with approximately 2.02 million shares traded.

Recently, Investor’s Business Daily upgraded Twilio’s relative strength rating, and the company reported 15% revenue growth and improved profitability in its fiscal third quarter of 2025, leading it to raise its full-year guidance. Market participants are now watching for the potential of heightened short-term volatility ahead of the next earnings release, expected around February 12, 2026.

Twilio is a cloud-software provider that offers businesses APIs for messaging, voice calls, authentication and other customer-communication functions, and is regarded as a key player in the Communications Platform-as-a-Service (CPaaS) market. The company has recently enhanced profitability through restructuring and cost-cutting measures, while investing in AI and a customer-data platform to strike a balance between growth and margin improvement.