Core Viewpoint - Truist has lowered the price target for Cloudflare (NET) to $225 from $275 while maintaining a Buy rating, indicating a cautious yet optimistic outlook for the cybersecurity sector in Q4 [1] Group 1: Company Insights - Cloudflare's price target adjustment reflects a broader research note on the cybersecurity sector, which is expected to report strong performance in calendar Q4 [1] - The firm anticipates that companies will adopt a conservative approach for guidance, potentially leading to a "beat-and-raise" trend for 2026 [1] Group 2: Industry Trends - Conversations with IT budget holders and software sellers suggest that demand and the macro environment remain stable, with ongoing momentum in Security & AI initiatives [1] - Despite the positive outlook, software equities are facing significant pressure as investors shift focus towards AI hardware, contributing to a decline of approximately 7% in the IGV – iShares Expanded Tech-Software Sector ETF in the early weeks of trading [1] - Concerns regarding AI-driven competitive disruption, slow monetization of AI features, prolonged high interest rates, and geopolitical shocks are impacting the sector [1]

Core Viewpoint - NET stock is anticipated to experience significant movement, with implied volatility indicating a potential price range between $152.89 and $215.45 based on current market conditions [1] Options Market Sentiment - The options flow shows a bullish sentiment, primarily driven by sold puts, although a preference for more debit-based directional trades was not observed last week [2] - The Barchart Technical Opinion indicator currently rates NET stock as a 56% Sell, reflecting broader market pessimism [3] Company Narrative and Market Context - Cloudflare's leadership highlighted a "technical glass ceiling" for enterprises that do not modernize their applications, emphasizing the risks of excessive spending on AI while innovation accelerates [4] - Concerns about the technology ecosystem have led to a decline in market value for Cloudflare, with a 54% increase in NET stock over the past year prompting some investors to exit [5] Statistical Analysis and Market Dynamics - The Black-Scholes model provides a first-order analysis of volatility, but the Markov property suggests that future market behavior is influenced by current states rather than being independent [6][7] - Under normal conditions, a long position in NET stock typically ranges between $170 and $230, but recent performance has shown only four up weeks in the last ten, indicating a downward trend [9] - The Markovian analysis indicates a broader range of outcomes between $160 and $240, with the highest probability density between $183 and $211 under current market conditions [10][11] Trading Strategy - A recommended trade is the 200/210 bull call spread expiring March 20, 2026, involving buying the $200 call and selling the $210 call for a net debit of $455, with a maximum profit potential of $545 [12][13] - This trade aligns with expected price movements and probability density, suggesting a high likelihood of reaching the $210 price point based on the 4-6-D sequence [14] - The high implied volatility for the March 20 options chain supports a directional wager rather than a more expensive straddle-type trade [15]

Core Insights - KeyCorp reported a record full-year revenue of $7.5 billion, reflecting a 16% year-over-year increase, with fourth-quarter revenue exceeding $2 billion [1][3][31] - The company achieved a net income of $474 million for the fourth quarter of 2025, compared to a net loss of $(279) million in the same quarter of 2024 [2][36] - KeyCorp's strong performance is attributed to strategic investments in technology and front-line bankers, leading to significant organic growth [5][40] Financial Performance - Fourth-quarter pre-provision net revenue increased by $46 million quarter-over-quarter, with a full-year increase of 44% year-over-year [1][3] - Net interest income rose by 3% quarter-over-quarter, with a net interest margin of 2.82%, up 7 basis points [1][9] - Noninterest income for the fourth quarter was $782 million, an increase of 11.4% from the previous quarter [12][40] Asset Quality - Nonperforming assets decreased by 6% quarter-over-quarter, with net charge-offs down to 39 basis points [1][22] - KeyCorp's allowance for credit losses was $1.7 billion, stable compared to previous quarters, reflecting improving credit quality trends [24][25] Capital Management - The Common Equity Tier 1 ratio stood at 11.7%, with the company repurchasing $200 million of common shares during the quarter [2][26] - KeyCorp's capital ratios exceeded regulatory benchmarks, indicating a strong capital position [26][28] Business Segments - The Consumer Bank segment generated $948 million in revenue, a 1.4% increase from the previous quarter, while the Commercial Bank segment reported $1.1 billion in revenue, up 9.4% [31][37] - Investment banking and debt placement fees recorded strong performance, contributing to the overall revenue growth [5][40] Future Outlook - The company anticipates continued organic revenue and earnings growth in 2026, supported by strong business momentum and strategic investments [5][40]

Group 1 - Citigroup has lowered the target price for Cloudflare from $318 to $260 while maintaining a "Buy" rating [1]

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start 2026, consider joining Out Fox The Street .Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential ...

Cloudflare Inc. (NYSE:NET) co-founder and CEO and Matthew Prince said in a recent interview that Google, a unit of Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) , allows its web crawlers to access significantly more data than competitors amid debates over AI training limits.Google’s Data Access AdvantagePrince, while speaking with John Coogan and Jordi Hays on a TBPN podcast released on Friday, disclosed that Googlebot sees 3.2 times more web pages than OpenAI.“For every one page that OpenAI sees, Google is se ...

Core Viewpoint - Cloudflare's acquisition of AI data platform Human Native aims to enhance its services for AI developers and content creators, reflecting a strategic move to control and monetize content in the evolving internet economy [1][2] Group 1: Acquisition Details - Cloudflare's stock fell by 2.26% on Thursday but rebounded over 1% in pre-market trading on Friday following the announcement of the acquisition [1] - Human Native, founded in 2024, has collaborated with major companies in the tech and media sectors, including Google’s DeepMind and Figma [1] - The financial terms of the acquisition have not been disclosed, and Cloudflare has not specified when the acquisition will be completed [2] Group 2: Strategic Implications - The acquisition is intended to help Cloudflare build tools that facilitate the discovery, pricing, and purchasing of content through transparent channels, supporting the long-term development of an open internet [1] - Cloudflare's CEO Matthew Prince emphasized the importance of content creators having control over their works, whether for human creation or AI optimization [1] - The company plans to launch an "AI crawler control" product by summer 2025, allowing clients to restrict AI crawlers from accessing their websites or commercializing their content [1] Group 3: Market Impact - Cloudflare's cybersecurity products have benefited from the AI boom, with the company's stock price increasing by over 60% in the past year [1]

A logo of CLOUDFLARE sits outside the company's house on the opening day of the 55th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, January 20, 2025.Cloudflare is acquiring artificial intelligence data marketplace Human Native, the company said Thursday, as it expands its push to develop transactions between AI developers and content creators."Content creators deserve full control over their work, whether they want to write for humans or optimize for AI," Cloudflare CEO Matthew Prin ...

Cloudflare, Inc. (NYSE:NET) is one of the stocks Jim Cramer recently looked at. Answering a caller’s query about the stock during the episode, Cramer commented: “I just yesterday was speaking to a very large investor, and he said, what kind of companies are you looking at that you like? I said, well, I’m trying to buy companies that are down a lot, you know maybe, you know, more than just a couple percent from their highs, that are run very well, that do good things, and I’m very, I’m not worried about th ...

Group 1 - Investors with significant capital have adopted a bearish stance on Cloudflare, indicating potential insider knowledge about upcoming events [1] - The overall sentiment among large traders is divided, with 25% bullish and 37% bearish [3] - Recent options activity includes 2 put options totaling $52,245 and 6 call options totaling $265,664 [4] Group 2 - Whales have targeted a price range for Cloudflare between $45.0 and $250.0 over the last three months [5] - The volume and open interest data provide insights into the liquidity and interest for Cloudflare's options [6][7] - A snapshot of the 30-day option volume and interest reveals significant trading activity [8] Group 3 - Current trading volume for Cloudflare is 1,319,015, with a price increase of 1.12% to $188.49 [17] - Analysts have set an average target price of $215.0 for Cloudflare, with a neutral rating from Piper Sandler and a target price of $220 [15][17] - UBS also maintains a neutral rating for Cloudflare, targeting a price of $210 [17]