Twilio Inc. (TWLO) saw its share prices drop to a new three-month low on Monday as investor sentiment turned negative due to profit margin challenges. The stock hit $91.85 during intra-day trading and closed at $92.44, down 6.31% from the previous day.

This marked the second day Twilio fell below the $100 mark, last seen on May 1. Despite this, the company reported a swing to a net income of $22.4 million, with revenues increasing by 13.5% to $1.228 billion year-on-year.

Following the earnings report, Twilio Inc. (TWLO) raised its organic revenue growth guidance to 9-10% and targeted a 10-11% increase in revenues year-on-year. While TWLO shows promise, other AI stocks may offer higher returns with limited downside risk. Check out our report on the best short-term AI stock.

Read more at Yahoo Finance: Twilio (TWLO) Drops to New Low on Profit Margin Headwinds