Shares of Cloudflare (NET) have been strong performers lately, with the stock up 9.3% over the past month. The stock hit a new 52-week high of $123.13 in the previous session. Cloudflare has gained 14.3% since the start of the year compared to the 37.2% move for the Zacks Computer and Technology sector and the 41.7% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus ...

Shares of cybersecurity firm Cloudflare (NET 3.76%) were up Friday, gaining 3.9% as of 12:30 p.m. ET. The stock was up as much as 5.4% earlier in the day. The leg up comes as the S&P 500 (^GSPC 1.28%) and the Nasdaq Composite (^IXIC 1.84%) were up 1% and 1.7%, respectively.An analyst at Citigroup upgraded Cloudflare's rating, helping to boost the stock.Higher highsIn a research report on Friday, Citi's Fatima Boolani upgraded Cloudflare from neutral to buy, adjusting her price target for Cloudflare stock fr ...

The latest trading session saw Cloudflare (NET) ending at $114.82, denoting a +0.3% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.89%.The the stock of web security and content delivery company has risen by 4.93% in the past month, leading the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56%.The upcoming earnings release of Cloudfl ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Stock Performance - Cloudflare (NET) shares surged 43.1% over the past year, outperforming the Zacks Computer and Technology sector (33.1%) and the S&P 500 (25%) [1] - The stock also outperformed industry peers such as CrowdStrike (CRWD), DataDog (DDOG), and Fastly (FSLY) [1] Financial Performance - Cloudflare reported third-quarter 2024 non-GAAP earnings of 20 cents per share, a 29.4% year-over-year increase [4] - Third-quarter revenues reached $430.1 million, a 28.2% year-over-year growth [4] - The company surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters, with an average surprise of 25.5% [3] Revenue and Earnings Estimates - Zacks Consensus Estimate for Q4 2024 sales is $451.80 million, with a year-over-year growth estimate of 24.65% [7] - Q1 2025 sales are estimated at $471.32 million, with a 24.49% year-over-year growth [7] - Full-year 2024 sales are projected at $1.66 billion, a 28.12% increase from the previous year [7] - EPS estimates for Q4 2024 are $0.18, with a 20% year-over-year growth [7] - Full-year 2024 EPS is estimated at $0.74, a 51.02% increase from the previous year [7] Product Innovation and Partnerships - Cloudflare has integrated artificial intelligence (AI) into its solutions, launching numerous AI-based products [5] - The company has collaborated with major AI players such as NVIDIA and Microsoft, strengthening its portfolio and strategic partnerships [5] Customer Base - Cloudflare secured 219 large customers paying over $100,000 annually in Q3 2024 [12] - The company serves 35% of Fortune 500 companies, reflecting a high-quality and prestigious customer base [12] Valuation Concerns - Cloudflare is trading at a forward 12-month P/S ratio of 19.04, significantly higher than the Zacks Internet – Software industry average of 3.02 [9] - The premium valuation raises concerns about the stock's sustainability and potential downward risk [9]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Investment Rating - The report gives Cloudflare an "Outperform" rating, indicating a positive outlook for the stock [3][6] Core Views - Cloudflare is a leader in the content delivery network (CDN) market with strong revenue growth, achieving $1.297 billion in revenue in 2023, a 32.97% YoY increase [1][7] - The company has a competitive edge in the cybersecurity market, with its integrated platform offering comprehensive solutions, competing against major players like IBM, Microsoft, Broadcom, and Cisco [1][7] - Cloudflare's product portfolio is well-suited for the AI era, with offerings like Workers AI and Firewall for AI, positioning it as a key player in AI application development and security [1][7] - The company's subscription-based business model, with 190,000 paying customers and an ARPU of $6,833, is driven by developer services, which are expected to grow at a CAGR of 15.9% from 2024 to 2027 [1][7] Financial Performance - Cloudflare's revenue is projected to grow to $1.662 billion in 2024, $2.101 billion in 2025, and $2.649 billion in 2026, with YoY growth rates of 28.1%, 26.4%, and 26.1% respectively [4][10] - Non-GAAP net income is expected to be $265 million in 2024, $305 million in 2025, and $386 million in 2026, with net margins of 16%, 15%, and 15% respectively [4][10] Product and Market Analysis - Cloudflare's global network uses Anycast routing, which provides built-in security and efficient data transmission, making it a key differentiator in the CDN market [1][7] - The company has a strong presence in the SMB market, with a focus on cost-effective solutions, and has surpassed Akamai in customer numbers, indicating effective market entry strategies [102][103] - Cloudflare's edge computing platform, Workers, offers zero cold start time, giving it a performance advantage over competitors like Akamai and Fastly [108][109] AI and Future Growth - Cloudflare is well-positioned for AI-driven growth, with products like Workers AI and Firewall for AI, which cater to the increasing demand for AI application development and security [1][7] - The company's AI Gateway provides a unified interface for managing and scaling generative AI workloads, supporting multiple AI providers and offering features like caching and rate limiting [120][121]

Demand for electricity looks only set to grow with the increasing number of electric vehicles, data centers, and the wider electrification of everything. To meet this demand, increased clean power generation is essential. While nuclear is considered a potential solution, itsMountain Valley Value Investments specializes in identifying undervalued companies with strong growth potential across various sectors. Focused on long-term value and buying at the right price, we leverage deep industry insights and rigo ...