03-12-2019, 01:56 PM
And let me say something else (provide another pump, if you like). The more I think of it, the more I realize that this stock is still massively undervalued. Pareteum has a $400M market cap, Twilio has a $15B market cap, that's 37.5x Pareteum's.
But their 2019 revenue (estimated roughly $1B) is 7x-8x that of Pareteum's. Profit wise, they're ahead only a little, at best.
That is, Pareteum's stock could five-fold and only then would it come into Twilio's valuation region.
I think that valuation disconnect is due to three reasons:
- Twilio seen as the market leader
- Pareteum still not very well known
- Some skepsis with regard to Pareteum's rapidly rising backlog numbers.
I think the second and third will (gradually) disappear, Twilio might keep some valuation premium for being the recognized market leader, at least for now. But not by a factor of 5x.