Cloudflare(US:NET) Forbes·2025-12-03 18:35Company Overview - Cloudflare is currently valued at $70 billion with a revenue of $2.0 billion, trading at $201.26 [2] - The company has shown a revenue growth of 28.1% over the last 12 months, with an operating margin of -9.6% [2] - Cloudflare's liquidity is strong, with a Debt to Equity ratio of 0.05 and a Cash to Assets ratio of 0.7 [2] - The stock is currently valued at a P/E multiple of -727.5 and a P/EBIT multiple of -874.5, indicating a very high valuation [2] Stock Performance - Cloudflare's stock has decreased by 20.5% over 21 trading days due to concerns about network reliability following a global outage [2] - Historically, the stock has returned a median of 12.6% in the year following significant drops since 2010 [3] - The stock experienced an 82.6% decline from its peak of $217.25 on November 18, 2021, to $37.84 on November 9, 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500 [8] - The stock fully recovered to its pre-crisis peak by September 8, 2025, and reached a high of $253.30 on November 2, 2025, before trading at $201.26 [8] Market Resilience - Concerns arise regarding the resilience of Cloudflare's stock if the market experiences a downturn, particularly if it drops another 20-30% to $141 [4] - The stock has historically performed worse than the S&P 500 during several economic downturns, both in terms of the extent of decline and speed of recovery [4] - In the 2020 pandemic, the stock declined by 31.8% from a high of $23.35 on March 5, 2020, to $15.92 on March 16, 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500, but it fully regained its pre-crisis peak by March 30, 2020 [9]