Core Insights - Cloudflare (NET) has experienced a significant 68.5% increase year-to-date, outperforming the Zacks Internet - Software industry's return of 12.9% [1] - Investors are contemplating whether to increase their investment in NET stock or exercise caution due to its high valuation [1] Group 1: Growth Drivers - The secure access service edge (SASE) platform of Cloudflare is rapidly gaining traction among enterprises, with the company securing its longest SASE deal in Q1 of fiscal 2025 [4] - Cloudflare's Zero Trust security products are integrated with its network services, leading to larger deals and a growing customer base [5][7] - The Cloudflare Workers platform has seen a remarkable 4,000% year-over-year increase in inference requests, indicating strong developer engagement [10] Group 2: Customer Base and Financial Projections - Cloudflare's total customer base has reached 250,819 paying customers, reflecting a 27% year-over-year growth [11] - The Zacks Consensus Estimate projects revenue growth of 25.38% and 26% for fiscal 2025 and 2026, respectively, with earnings expected to grow by 5.3% and 31.6% in the same periods [12] Group 3: Competitive Landscape - Cloudflare faces competition in the content delivery space from companies like Amazon, Akamai Technology, and Fastly, as well as in the cybersecurity sector from Palo Alto Networks and Zscaler [14][16][17] - Zscaler is recognized as a leader in the Zero Trust space, offering comprehensive solutions that pose a threat to Cloudflare's market position [17] Group 4: Valuation Concerns - Cloudflare's current valuation stands at a 12-month forward P/S ratio of 25.43X, significantly higher than the industry average of 6.97X, raising concerns about potential overvaluation [18]

Core Insights - Cloudflare (NET) has signed its longest secure access service edge (SASE) contract in Q1 2025, indicating strong momentum as enterprises modernize their network security and connectivity [1][10] - The company combines Zero Trust security products with network services to provide a comprehensive cloud-based SASE solution, facilitating larger deals [2] - Cloudflare's partnerships with industry leaders like TD SYNNEX and Microsoft enhance its geographical reach and support growth in managed security services [3][4] Customer Growth and Financial Performance - Cloudflare reported 250,819 paying customers at the end of Q1 2025, reflecting a 27% year-over-year increase [5] - The company added 30 new customers contributing over $100,000 in annual revenues, bringing the total to 3,527 [5][10] - The Zacks Consensus Estimate for NET's fiscal 2025 and 2026 earnings suggests year-over-year growth of 5.33% and 31.64%, respectively [12] Competitive Landscape - Cloudflare faces competition from Palo Alto Networks and Zscaler in the SASE and Zero Trust markets, with Palo Alto Networks reporting over 6,000 active customers and significant growth [6][8] - Zscaler leads in the Zero Trust space and is transitioning to a Zero Trust Everywhere model, which secures various access points [7] Market Trends - The SASE market is projected to grow at a CAGR of 23.6%, while the Zero Trust market is expected to grow at a CAGR of 16.7%, providing Cloudflare with ample growth opportunities [8] Valuation Metrics - Cloudflare's shares have increased by 68.6% year-to-date, outperforming the Zacks Internet - Software industry's growth of 13% [9] - The company trades at a forward price-to-sales ratio of 26.77X, significantly higher than the industry's average of 5.68X [11]

Core Viewpoint - A significant outage occurred across major cloud services including Google Cloud, AWS, Azure, and Cloudflare, impacting numerous applications and services globally, with Google Cloud experiencing the most severe disruptions [1][6][7]. Summary by Sections Outage Details - Google Cloud reported over 13,000 incidents around 11:30 AM PDT, with the number of reports decreasing to 251 by 12:49 PM [2][7]. - AWS recorded approximately 5,000 outage reports during the same timeframe [3]. - Microsoft Azure's status page indicated no issues despite around 1,000 reports at peak [4][2]. Impact on Services - The outage primarily affected Google Cloud Platform (GCP) products, including Gmail, Google Calendar, and Google Drive, due to issues with Identity and Access Management (IAM) [7][8]. - Other services like Character AI and OpenAI's ChatGPT also faced disruptions, with reports of login-related issues [5][7]. Recovery Efforts - Google announced that the root cause was identified and mitigation measures were implemented, with most services restored by 1:45 PM PDT [9][10]. - By 6:27 PM PDT, all Google Cloud services were reported to be back to normal [10]. Affected Companies - Shopify, a major Google Cloud customer, reported significant service issues due to the outage [15]. - Spotify experienced a decline in access and reported ongoing issues even after Google Cloud's recovery [18][19]. - Cloudflare acknowledged that some of its services were impacted due to reliance on Google Cloud, although its core services remained unaffected [20][21]. Cause of the Outage - The outage was attributed to a faulty automatic quota update in Google's API management system, which led to widespread service failures [10][12]. - Discussions on platforms like Hacker News suggested that a service named Chemist may have been responsible for the failures, affecting multiple services [29][30]. Industry Implications - This incident highlighted the interdependencies among major cloud service providers, raising concerns about the potential for cascading failures in the future [31]. - The outage posed a setback for Google, which is striving to compete with larger rivals like AWS and Azure in the cloud infrastructure market [33]. Company Response - Google committed to implementing measures to prevent similar incidents, including improving error handling and testing protocols [12][34]. - The company has been undergoing cost-cutting measures, including layoffs and voluntary departure programs, which have raised concerns about its operational stability [34][36].

Core Viewpoint - A significant outage occurred across major cloud services including Google Cloud, AWS, Azure, and Cloudflare, impacting numerous applications and services globally, with Google Cloud experiencing the most severe disruptions lasting nearly three hours [1][8][15]. Summary by Sections Outage Reports - Google Cloud reported over 13,000 incidents around 11:30 AM PDT, with the number of reports decreasing significantly by the afternoon [2][8]. - Microsoft Azure recorded approximately 1,000 outage reports at 11:49 AM PDT, which dropped to 251 by 12:49 PM [3]. - AWS had around 5,000 outage reports during the same timeframe [4]. Impact on Services - Google Cloud's outage affected multiple products including Gmail, Google Calendar, and Google Drive, starting at 10:51 AM PDT [10]. - Spotify and Cloudflare were notably impacted, with Spotify experiencing a decline in access and Cloudflare reporting issues with its Workers KV service due to dependencies on Google Cloud [19][21]. Recovery Efforts - Google Cloud's engineering team identified the root cause and implemented mitigation measures by 12:41 PM PDT, with most services reportedly restored by 3:16 PM PDT [12][13]. - Cloudflare confirmed that all services were restored by 1:57 PM PDT, although some residual impacts remained [23][22]. Causes and Speculations - Speculations arose regarding a service named Chemist within Google that may have caused the widespread outages, affecting visibility checks and leading to failures across multiple services [30][31]. - The interdependence of cloud service providers was highlighted, raising concerns about the potential for cascading failures in the future [37][38]. Broader Implications - The incident raised questions about the reliability of cloud infrastructure, especially as Google Cloud competes with larger providers like AWS and Azure [38]. - The outage's impact extended to various companies, including Shopify and GitHub, indicating a domino effect triggered by the initial Google Cloud failure [38].

Industry Overview - The content delivery network (CDN) market is expected to grow at a CAGR of 18.04% from 2025 to 2034, indicating strong industry growth potential [2]. Cloudflare Analysis - Cloudflare's CDN offers a high-performance platform that enhances content delivery speed and secures web connectivity, reducing latency and improving load times [4]. - The company employs advanced techniques such as tiered caching and Argo smart routing to optimize delivery efficiency and minimize traffic [5]. - Cloudflare supports advanced protocols like HTTP/3 and provides developer flexibility through Cloudflare Workers, which has been adopted by over three million developers [6]. - Projected revenues for Cloudflare in 2025 are between $2.09 billion and $2.094 billion, reflecting a year-over-year growth of 25.4% [7]. - Non-GAAP earnings per share for Cloudflare are anticipated to be between 79 cents and 80 cents, indicating a year-over-year growth of 5.3% [8]. Akamai Technologies Analysis - Akamai Technologies has experienced a decline in delivery revenues for 17 consecutive quarters, raising concerns about its CDN business sustainability [11][15]. - The company integrates security features like DDoS and WAF protection with edge computing solutions, handling approximately two trillion web interactions daily [12][13]. - Akamai's non-GAAP earnings are expected to be in the range of $6.10 to $6.40 per share, with a Zacks Consensus Estimate of $6.27 per share, indicating a year-over-year decline of 3.2% [15]. Stock Performance and Valuation - Year-to-date, Cloudflare shares have increased by 66.9%, while Akamai shares have decreased by 18.3%, reflecting diverging investor sentiment [11][17]. - Cloudflare is trading at a forward sales multiple of 26.65X, while Akamai is at 2.71X, suggesting that Cloudflare's strong market position justifies its higher valuation despite appearing overvalued [18]. Conclusion - Cloudflare is gaining market share and showing robust growth, while Akamai is struggling with declining revenues, leading to a more favorable investment outlook for Cloudflare [19].

Core Insights - Cloudflare's Workers platform is emerging as a significant driver of future growth, highlighted by a record deal exceeding $100 million, indicating a shift in perception among large customers towards Cloudflare's capabilities beyond security and networking [1][10] Company Performance - In the first quarter of 2025, Cloudflare reported a remarkable 4,000% year-over-year increase in inference requests on its Workers AI tool, showcasing strong growth in AI-driven usage [4][10] - The company's shares have increased by 66.5% year-to-date, significantly outperforming the Zacks Internet - Software industry's growth of 13.2% [9] Product Development - The Workers platform, launched in 2017, has attracted over three million developers, facilitating the building and running of applications closer to users [2] - The introduction of the Model Context Protocol (MCP) server within the Workers platform aims to enhance AI model integration, enabling clients to deploy AI agents for various tasks, which could lead to increased upselling and customer acquisition [5][10] Competitive Landscape - Cloudflare competes with major players like Alphabet and Amazon, which also offer serverless and container-based edge deployment solutions. However, Cloudflare's configuration-less auto-scaling and high-performance global network position it favorably in this competitive environment [6][8] Valuation and Earnings Estimates - Cloudflare's forward price-to-sales ratio stands at 26.61X, significantly higher than the industry average of 5.68X, indicating a premium valuation [11] - The Zacks Consensus Estimate for Cloudflare's fiscal 2025 and 2026 earnings suggests year-over-year growth of 5.33% and 31.62%, respectively, although recent revisions indicate downward adjustments for both years [12]

Industry Overview - The cybersecurity market is experiencing significant growth, projected to increase from $215 billion last year to $697 billion by 2035, reflecting an annualized growth rate of 11.3% over the next decade [2] - The typical data breach can cost companies approximately $4.9 million in damages, highlighting the critical importance of cybersecurity in today's digital landscape [1] Company Highlights - **Palo Alto Networks** specializes in firewall technology and has expanded into cloud security and AI integration, with analysts estimating a long-term earnings growth of 20% annually as security spending increases [5][6] - **CrowdStrike Holdings** is recognized for its endpoint security and has developed a comprehensive security platform, achieving $4.4 billion in annual recurring revenue, with a price-to-sales ratio of 28, indicating strong growth potential [8][9] - **Cloudflare** operates one of the largest content delivery networks and mitigates DDoS threats, boasting over 250,000 paying customers and positioning itself in edge computing for future technologies like autonomous vehicles [10][11] - **SentinelOne** utilizes AI for autonomous threat detection and competes directly with CrowdStrike, currently valued at a price-to-sales ratio of 6.7, suggesting potential long-term upside despite being smaller and not yet profitable [12][13] - **Microsoft** is a major player in the cybersecurity space, integrating security products into its Windows operating system and benefiting from its diverse exposure to AI, cloud computing, and enterprise software, making it a solid investment in the tech sector [14][15]

NEW YORK, June 10, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in NET Power, Inc. ("NET Power, Inc." or the "Company") (NYSE: NPWR) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of NET Power, Inc. investors who were adversely affected by alleged securities fraud between June 9, 2023 and March 7, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/net-power-inc-lawsu ...

Core Insights - Cybersecurity companies like Zscaler, CyberArk, and Cloudflare are positioned to benefit from ongoing trends in digital security, remaining resilient against macroeconomic challenges [1][2] Group 1: Zscaler - Zscaler employs "zero trust" systems, treating all network users as potential threats and providing cloud-native services that are easier to scale and maintain [4] - The company serves over 7,500 customers globally and secures more than 500 billion transactions daily [4] - Analysts project Zscaler's revenue to grow at a compound annual rate of 21% from fiscal 2024 to fiscal 2027, with profitability expected by 2027 [5] - Zscaler plans to triple its zero trust deployments, expand its AI-powered ZDX Copilot platform, and integrate with larger cybersecurity firms [5] - The zero trust market is anticipated to grow at a compound annual rate of 16.7% from 2025 to 2032, indicating significant growth potential for Zscaler [6] Group 2: CyberArk - CyberArk is a leader in the privileged access management (PAM) market, focusing on internal threats rather than external ones [7] - The company serves over 10,000 customers across 110 countries [7] - Analysts expect CyberArk's revenue to grow at a compound annual rate of 24% from 2024 to 2027, with profitability anticipated in 2026 [8] - Growth drivers include the acquisition of Venafi, expansion of cloud-based subscriptions, and diversification into new security services [8] - The PAM market is projected to grow at a compound annual rate of 21.4% from 2024 to 2033, supporting CyberArk's high valuation of 15 times this year's sales [9] Group 3: Cloudflare - Cloudflare enhances digital media delivery and protects clients from bot-based attacks through its content delivery network (CDN) [10] - The company serves data to users in 330 metropolitan areas across over 125 countries, processing an average of 78 million HTTP requests per second [10] - Analysts forecast Cloudflare's revenue to grow at a compound annual rate of 27% from 2024 to 2027, with narrowing net losses [11] - Key growth factors include the deployment of Nvidia's GPUs, expansion of the "Workers AI" platform, and growth of its Cloudforce One security platform [11] - The global CDN market is expected to expand at a compound annual rate of 17.7% from 2024 to 2030, providing Cloudflare with opportunities for continued growth [12]

NEW YORK, June 9, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of NET Power, Inc. (NYSE: NPWR).Shareholders who purchased shares of NPWR during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/net-power-inc-loss-submission-form/?id=151910&from=4CLASS PERIOD: June 9, 2023 to March 7, 2 ...