Cloudflare earnings send stock toward its best day in 14 months. Here's the caveat.

Cloudflare Inc. won big praise on Wall Street for its latest earnings, but the majority of analysts still decline to recommend its stock, largely due to concerns about the valuation. The company “is executing well while simultaneously benefiting from strong secular trends, underpinned by rapid innovation in core networking, security and [generative artificial-intelligence] infrastructure,” JPMorgan’s Mark Murphy wrote in a note to clients.He added that “investors are rewarding these dynamics” as Cloudflare ...