Analyst: Twilio's Revenue Could Triple in Less Than 5 Years

Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...

Confession time: I own Twilio (NYSE: TWLO) stock -- but I'm not entirely comfortable with that.

For one thing, Twilio isn't a profitable company. Despite its shares gaining more than 50% over the past year, Twilio hasn't earned a penny of profit as calculated according to generally accepted accounting principles (GAAP). It's got no free cash flow, either, burning $35 million in cash instead. And by the one measure that you can actually value the company -- sales -- well, the stock sells for more than 16 times trailing sales.

Source Fool.com