Cloudflare (NET) and Radware (RDWR) are both serving the needs of enterprise cybersecurity, with common aims like Distributed Denial of Service (DDoS) prevention and Web Application Firewall (WAF) deployment. Beyond DDoS and WAF, Cloudflare provides Zero Trust architecture and multi-cloud security, while Radware focuses on hybrid cloud defenses.Both Cloudflare and Radware seem to gain from the accelerated growth of the cybersecurity space due to aggravated cyberattacks. Per a Mordor Intelligence report, the ...

Despite another day of big volatility for the market, Cloudflare (NET 0.10%) stock is moving higher in Tuesday's trading. The company's share price was up 1.9% as of 2:30 p.m. ET. Meanwhile, the S&P 500 index was up 0.1%, and the Nasdaq Composite index was down 0.4%. Earlier today, the stock had been up as much as 7%.On the heels of dramatic sell-offs, the stock market saw recovery momentum early in today's trading. The momentum has now faded, but Cloudflare is still in the green thanks to some news on the ...

Core Viewpoint - Cloudflare (NET) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a solid history of exceeding expectations [1]. Company Performance - Cloudflare has a strong track record of surpassing earnings estimates, particularly in the last two quarters, with an average surprise of 8.33% [2]. - In the most recent quarter, Cloudflare reported earnings of $0.19 per share against an expectation of $0.18, resulting in a surprise of 5.56%. In the previous quarter, it reported $0.20 per share compared to a consensus estimate of $0.18, achieving a surprise of 11.11% [3]. Earnings Estimates - Recent changes in earnings estimates for Cloudflare have been favorable, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that stocks like Cloudflare have a nearly 70% chance of producing a positive surprise [6]. Earnings ESP Metric - Cloudflare currently has an Earnings ESP of +6.06%, indicating that analysts have recently become more optimistic about the company's earnings prospects [8]. - A positive Earnings ESP, when paired with a Zacks Rank of 3, suggests that another earnings beat may be imminent [8]. Importance of Earnings ESP - The Earnings ESP metric is crucial for predicting earnings performance, as it compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]. - While many companies may beat consensus EPS estimates, the Earnings ESP is a key factor in assessing the likelihood of stock price movement post-earnings release [9].

Equity Insider News Commentary Issued on behalf of Scope Technologies Corp. To support this growth, Scope has proactively invested in expanding its infrastructure. Internal benchmarks now indicate the QSE system is capable of processing millions of secure, encrypted messages per second, placing it in the same league as large-scale communication platforms such as WhatsApp and Signal—but with true round- trip quantum-resistant encryption built in. VANCOUVER, BC, April 1, 2025 /PRNewswire/ -- Equity Insider Ne ...

Core Viewpoint - Goldman Sachs analyst Gabriela Borges maintains a Buy rating on Cloudflare, Inc with a price target of $161, emphasizing the significant opportunity in AI inference and its rapid ramp-up potential [1] Group 1: Financial Projections - Analyst estimates that Act III products will generate $80 million in Annual Recurring Revenue (ARR) in 2024, with a potential growth to $1.3 billion by 2030, reflecting a 60% Compound Annual Growth Rate (CAGR) [2] - Borges projects fiscal 2025 revenue of $2.09 billion and Earnings Per Share (EPS) of $0.81 [4] Group 2: Capital Expenditure and Growth Indicators - Cloudflare guided capital expenditures (capex) to be 12-13% of revenue, indicating a ~40% increase due to investments in GPU rollout for AI inference demand [3] - The annual contract value (ACV) for Act III products increased by 76%, suggesting acceleration in growth, with plans to double global computing capacity this year [3][4] Group 3: Market Sentiment and Stock Performance - BofA Securities analyst Madeline Brooks also upgraded Cloudflare to Buy, raising the price target to $160, driven by growth in AI-as-a-Service and network security [5] - Despite positive analyst sentiment, NET stock closed lower by 4.98% to $121.15 on Wednesday [5]

Core Viewpoint - Cloudflare Inc. has experienced a decline in stock value due to broader market pressures, but its long-term growth prospects remain strong, supported by robust financials and AI-driven innovations [1][4][18]. Financial Performance - In Q4 2024, Cloudflare reported revenues of $459.9 million, a 27% year-over-year increase, surpassing Zacks Consensus Estimate by 1.8% [9]. - Non-GAAP earnings per share (EPS) reached 19 cents, reflecting a 26.7% annual increase and beating estimates by 5.6% [9]. - The company achieved an operating income of $67.2 million, a 69% year-over-year increase, with an operating margin of 14.6% [14]. - Free cash flow for Q4 was $47.8 million, totaling $166.9 million for the full year 2024 [15]. Customer Growth and Retention - Cloudflare's large customer base grew by 27% year-over-year, with 3,497 enterprise clients now spending over $100,000 annually, contributing 69% of total sales [10]. - The dollar-based net retention rate improved to 111%, indicating increased spending from existing customers [11]. Strategic Initiatives - The company has improved its sales execution, focusing 80% of new sales hires on enterprise clients, which is expected to drive larger deal wins in 2025 [12]. - Notable customer contracts include a $20 million deal with a Fortune 100 technology firm and a $13.5 million deal with a leading AI company [13]. Growth Drivers - Cloudflare's focus on AI and Zero Trust security is expected to drive long-term growth, with significant traction in its Zero Trust platform [16]. - The company's AI offerings, such as Workers AI and AI Gateway, provide up to 10 times price performance improvements over traditional hyperscalers, positioning Cloudflare as a critical infrastructure provider in the AI segment [17]. Future Outlook - For 2025, Cloudflare forecasts a 25% year-over-year revenue growth, projecting sales between $2.90 billion and $2.94 billion [15]. - The company plans to increase capital expenditures to 12-13% of total revenues to invest in AI infrastructure and expand platform capabilities [15].

Core Viewpoint - BofA Securities analyst upgraded Cloudflare, Inc. from Underperform to Buy, raising the price forecast from $60 to $160, citing strong potential in AI-as-a-Service and network security [1] Group 1: AI and Security Growth - The momentum in AI and security is projected to drive a 30% compound annual growth rate over the next three years, an increase from the previous estimate of 25% [2] - Customers are forecasting an 8% increase in AI spending, reaching $100,000 per customer, which will account for 15% of total customer spending [3] Group 2: Market Position and Revenue Potential - Cloudflare's network security products are gaining significant market share, with a 33% penetration rate and over 50% of new spending expected to be directed toward security solutions [4] - The analyst is optimistic that Cloudflare will meet or exceed its full-year revenue guidance based on current momentum [4] Group 3: Competitive Advantage - Cloudflare is increasingly preferred over major hyperscalers like AWS, Oracle, and Azure due to its ease of use, scalability, and superior utilization benefits [3] Group 4: Revenue Targets and Execution Challenges - The company targets $5 billion in revenue for 2028, which assumes a revenue reacceleration and growth that is about 400 basis points higher than the average peer group forecast [5] - Achieving this goal will require near-perfect go-to-market execution, especially with Enterprise customers, who have historically been a weaker segment for Cloudflare [5]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - Bank of America upgraded Cloudflare stock from underperform to buy, highlighting the company's artificial intelligence (AI) business as a key driver for this decision [1][4]. Group 1: Company Overview - Cloudflare is often perceived primarily as a cybersecurity company, with its security products achieving a 33% market penetration [2]. - The company has been expanding its offerings beyond cybersecurity, deploying graphics processing units (GPUs) to support AI workloads in the cloud [3]. Group 2: Financial Performance - Cloudflare has maintained a 36.5% average annual revenue growth rate over the last three years, although it is not yet profitable under GAAP [5]. - The company generated $166.5 million last year after accounting for capital expenditures and capitalized software costs [5]. Group 3: Market Valuation - Cloudflare's market capitalization stands at $44.8 billion, resulting in a high valuation of 269 times trailing free cash flow and 194 times projected 2025 free cash flow [6]. - Despite a potential growth rate of 30% annually over the next three years, the current valuation is considered expensive [6].

Group 1 - Cloudflare Inc (NYSE:NET) stock has increased by 5.9% following a double upgrade from BofA Global Research, raising the price target from $60 to $160 due to strengthening fundamentals and growth catalysts [1] - Despite a 28.3% year-over-year gain, 18 out of 30 brokerages still rate the stock as "hold" or worse, indicating potential for further upgrades [2] - The stock has experienced an 18.5% decline in the last month, pulling back from a record high of $177.37 on February 14, but is attempting to break out of a near-term downtrend [5] Group 2 - Options activity indicates caution among traders, with a 50-day put/call volume ratio of 1.11, ranking in the 97th percentile of annual readings, suggesting a bearish sentiment [3] - The Schaeffer's Volatility Index (SVI) for Cloudflare is at 46%, in the 17th percentile of its 12-month range, indicating relatively low option premiums, which may be favorable for long volatility strategies [4]