Cloudflare (NET) concluded the recent trading session at $221.32, signifying a -1.48% move from its prior day's close.
This September 2025, Cloudflare (NYSE:NET) celebrated its 6th anniversary as a public entity. What's remarkable is that Cloudflare's stock is valued at around $220, which is over 14 times its IPO price of $15 from 2019.
Cloudflare (NET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Cloudflare (NET) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
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Cloudflare continues to expand its AI-related offerings, including tools to protect original content from AI crawlers, broadening its market opportunity. Despite strong business prospects and steady growth of nearly 30%, the stock's valuation has become disconnected from its fundamentals. Cloudflare now trades at over 35x 2025 sales and nearly 200x 2026 EPS, making the current price hard to justify by any cash flow metric.
NET's high-growth, profitable cadence and improving performance metrics have been well rewarded through the triple-digits stock price rally. The same has been observed in the overly expensive P/E valuations, albeit nearing meme-like levels, one that we have observed in PLTR and TSLA. Combined with the deteriorating balance sheet and the aggressive go-to-market strategies, we believe that NET's investment thesis does not appear compelling here.
Jim Cramer, former hedge fund manager and Mad Money host, has singled out three stocks he believes have strong upside potential.
Cloudflare (NET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
NET beats Q2 earnings and revenue estimates, driven by enterprise growth and security demand. NET Raises full-year outlook on strong momentum.
Cloudflare, Inc. (NYSE:NET ) Q2 2025 Earnings Conference Call July 31, 2025 5:00 PM ET Company Participants Matthew Prince - Co-Founder, Co-Chairman & CEO Philip Alan Winslow - Vice President of Strategic Finance, Treasury and Investor Relations Thomas Josef Seifert - Chief Financial Officer Conference Call Participants Adam Charles Borg - Stifel, Nicolaus & Company, Incorporated, Research Division Andrew James Nowinski - Wells Fargo Securities, LLC, Research Division Gabriela Borges - Goldman Sachs Group, Inc., Research Division James Edward Fish - Piper Sandler & Co., Research Division Keith Weiss - Morgan Stanley, Research Division Matthew George Hedberg - RBC Capital Markets, Research Division Patrick Edwin Ronald Colville - Scotiabank Global Banking and Markets, Research Division Roger Foley Boyd - UBS Investment Bank, Research Division Operator Hello, and welcome to the Cloudflare Second Quarter 2025 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Phil Winslow.
Cloudflare (NET) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.2 per share a year ago.