$TWLO Cuts its losses and finds support. Reversal Trade.

Huge reversal in the after-hours could set up a change in fortunes for the stock in days to come.
The stock plunged as much as 12% before finding support at $88 which also filled a remaining gap on the chart. Such gaps are used as buy zones for the bottom feeders hoping to snap up a bargain in good companies, it looks like a fantastic buying opportunity in TWLO.

It is apparent that the guidance disappointed the machines rather than the humans.
This has the company expecting Non-GAAP per-share earnings between 16 cents and 17 cents. It also is looking for revenue ranging from $1.114 billion to 1.117 billion. Wall Street is estimating earnings per share of 17 cents on revenue of $1.12 billion for the year.

Earnings highligths Sourcde Seeking Alpha
Twilio (NYSE:TWLO) has tumbled 11.7% postmarket following Q3 earnings where it beat high estimates but also offered dim guidance for the current quarter.
Revenues grew 75% to $295.1M, and base revenues grew 79%. That revenue growth was also up 7% from the second quarter in both cases.
Operating loss was $94.7M (and non-GAAP operating loss was $3.6M, down from a gain of $4.3M a year ago).
Attributable GAAP net loss was $0.64 vs. a year-ago loss of $0.28; non-GAAP EPS fell to $0.03 from $0.07.
Active customer accounts more than doubled, to 172,092 (including contribution from SendGrid, acquired in February). Dollar-based net expansion rate was 132% vs. a year-ago 145%.
For Q4, it's guiding to revenue of $311M-$314M (with base revenue of $300M-$302M, vs. consensus for $320.7M), and EPS of $0.01-$0.02 (well below consensus for $0.07).
For the full year, that means total revenue of $1.114B-$1.117B (base revenue of $1.053B-$1.055B), and EPS of $0.16-$0.17.