There is an element of nervousness within the technology sector. The factor of stretched valuations is a potential concern. J.P. Morgan, however, cites “fears of advances in artificial intelligence disrupting the industry” as a reason for the recent pullback in software stocks. The financial company's strategist also believes that some correction is a good opportunity to buy some technology stocks. With that in mind, Cloudflare (NET) stock is one name that’s worth considering. NET stock has been relative ...

Core Viewpoint - Cloudflare's stock increased by 10% following the company's strong fourth-quarter performance, driven by rising demand for its networking and security tools due to artificial intelligence adoption [1][2] Financial Performance - Cloudflare reported adjusted earnings of 28 cents per share, exceeding analyst expectations of 27 cents per share [2] - The company generated $615 million in revenue, surpassing the anticipated $591 million [2] - Revenue growth was significant, with a 34% increase compared to the previous year [2] Market Dynamics - The rise of AI and agentic tools has led to increased demand for Cloudflare's offerings, indicating a shift in internet usage patterns [1] - CEO Matthew Prince highlighted that AI agents are becoming the new users of the internet, positioning Cloudflare as a critical platform for these tools [2]