Twilio (TWLO) sold off in a big way this morning because late last Friday, the company announced that it will sell shares in a secondary offering—but it didn’t say how many! The company disclosed that it will sell $50 million in stock and existing shareholders will sell an undisclosed amount.
This selloff has taken the stock down to its 50-day moving average—for the first time ever—and to me, that spells a buying opportunity if you don’t own the stock, and a chance to average up if you do—and you have a profit.
If you bought more recently and don’t have a profit, do not buy more; it’s bad policy to average down in a growth stock. But hold patiently to see how the dust settles after this announcement.