Jim Tierney at AllianceBernstein recently told Yahoo Finance that chipmakers like Nvidia were the first phase of the artificial intelligence (AI) trade. He believes the next phase will focus on cloud computing and software companies that use AI chips to provide services to their customers. Tierney believes that phase will move into high gear in 2025.Numerous companies should benefit as the trend takes shape, but Cloudflare (NET -1.12%) is one investors may overlook because it receives less media coverage th ...

Cloudflare (NYSE: NET ) is a well-managed, modern, well-positioned, and dominant cloud and network security company. I'm bullish not only on the business but the sector in general. While my valuation analysis shows a substantial margin of safety and a 20%+ five-yearOliver Rodzianko is an investment analyst specializing in the technology sector, grounded in timeless value principles. His expertise spans AI, semiconductors, software, and renewable energy, with a focus on companies that demonstrate resilient m ...

Cloudflare (NET) has enjoyed a remarkable 53.1% surge in the past six months, outperforming the Zacks Internet - Software industry, Zacks Computer and Technology sector and the S&P 500’s return of 19.6%, 9.3% and 12.4%, respectively. But with such a stellar performance, investors are left wondering — should they double down on NET, or is caution the wiser path?Cloudflare Price Performance ChartImage Source: Zacks Investment ResearchCloudflare’s Innovations Drive Market OutperformanceCloudflare’s strong perf ...

Morgan Stanley analyst Keith Weiss noted that cybersecurity remains a top spending priority for organizations globally.Weiss noted longer-term tailwinds are intact as recent technological advancements (GenAI, Public Cloud) expand the attack surface area, creating new product opportunities for securing AI and leveraging AI to automate security operations.In the near term, the analyst flagged risks investors might not fully appreciate heading into 2025.Also Read: This Analyst Downgrades Upstart But Says SoFi ...

Cloudflare, Inc NET stock is up after Morgan Stanley analyst Keith Weiss upgraded it from Equal-Weight to Overweight and raised its price target from $92 to $130.Cloudflare remains one of the most compelling secular stories in Weiss’ software coverage universe, given its large TAM (total addressable market), highly scalable network architecture, and emergence as a potential GenAI enabler as organizations look to adopt and experiment with LLMs (large language models).The company is well-positioned to gain a ...

New design capabilities, advanced data visualization and support for .NET 9 and Angular 19 add to the most comprehensive offer on the market for .NET and JavaScript UI libraries BURLINGTON, Mass., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Progress (Nasdaq: PRGS), the trusted provider of AI-powered infrastructure software, today announced the Q4 2024 release of its award-winning Progress® Telerik® and Progress® Kendo UI® component libraries. The release includes comprehensive updates to enhance the design-to-code ha ...

Cloudflare (NET 8.05%) operates the world's leading content delivery network (CDN) -- a distributed cloud platform that puts servers closer to where end users are, making data transfer faster, more secure, and more reliable for its clients and their customers. With servers in 330 locations across the globe, its estimated share of the CDN market exceeds 42%. As such, Cloudflare is in a solid position to make the most of an opportunity that's growing rapidly. Technology consulting firm SkyQuest estimates that ...

Cloudflare (NET) shares have gained 22.1% in the past six months, outperforming the Zacks Computer Technology sector, Zacks Internet Software industry and the S&P 500’s return of 8%, 10.6% and 10.3%, respectively. The outperformance reflects investors’ confidence in Cloudflare’s product enhancements with artificial intelligence (AI) capabilities and the potential positive impact on NET’s top line.For instance, the company recently upgraded its serverless AI platform, namely Workers AI, with enhanced graphic ...

Investment Rating - The report does not explicitly mention an investment rating for Cloudflare (NET US) [1] Core Viewpoints - Cloudflare is strategically positioning itself in the distributed computing network to meet the growing demand for AI inference [1] - The company is investing heavily in high-performance GPUs to enhance its Workers AI platform, which offers better performance and ROI compared to hyperscale public clouds [3] - Cloudflare has signed a $7 million annual contract with a fast-growing AI company to shift AI inference workloads to its platform [3] Financial Performance - Q3 2024 revenue reached $430 million, a 28% YoY increase, with direct customers contributing 79% ($341 million) and channel partners contributing 21% ($89 million) [1] - Non-GAAP gross margin was 78 8%, slightly above the long-term target range of 75%-77% and higher than the previous year's 78 7% [1] - Non-GAAP operating margin was 14 8%, with operating income of $63 5 million [1] - Free cash flow for the quarter was $45 3 million, exceeding market expectations [1] - The company added 219 new large customers with annualized payments exceeding $100,000, bringing the total to 3,265, a 28% YoY increase [1] - 35% of Fortune 500 companies are now Cloudflare's paying customers [1] - Revenue contribution from large customers remained stable at 67%, with a dollar-based net retention rate of 110%, down 2 percentage points QoQ [1] Strategic Initiatives - Cloudflare is shifting towards more pooled funding deals with its largest customers, accounting for nearly 10% of new ACV this quarter [1] - The company is upgrading its Workers AI platform to improve AI inference performance and expanding its GPU network across 180+ cities [3] Q4 2024 Guidance - Expected Q4 2024 revenue is projected to be between $451-$452 million, a 25% YoY increase [5] - Adjusted operating income for Q4 2024 is expected to be between $57-$58 million [5] - Full-year 2024 revenue is projected to be between $1 661-$1 662 billion, a 28% YoY increase [5] - Full-year 2024 adjusted operating income is expected to be between $220-$221 million [5] Market Data - Cloudflare's stock price is $90 91, with a market cap of $31 2 billion [2] - The company has 343 million shares outstanding [2] - The 52-week high/low is $116 00/$62 39 [2] - Net asset value per share is $2 84 [2]

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