
Cloudflare (NET) Stock Forecast & Price Target
Cloudflare (NET) Analyst Ratings
Bulls say
Cloudflare has demonstrated robust growth in its financial performance, with a 31% year-over-year revenue increase to $562.0 million, surpassing management's guidance, indicating strong operational execution. The company's remaining performance obligations (RPO) grew 42.6% year-over-year, reflecting accelerating growth for the third consecutive quarter and highlighting consistent demand across its products. Additionally, Cloudflare's net dollar retention rate (NDRR) improved to 119%, showcasing effective engagement with its largest customers and the company's successful transition towards enterprise sales, further bolstering its positive outlook.
Bears say
Cloudflare's recent financial performance has raised concerns regarding its trajectory towards profitability, suggesting that future bottom-line targets may need to be adjusted downward. The company's gross margin experienced a decline, attributed to an increased proportion of paid traffic leading to higher cost of goods sold, which has dampened expectations for sustainable profitability. Furthermore, the current valuation risk is heightened due to a trend of market depreciation for high-growth companies, making Cloudflare's elevated valuation particularly susceptible to investor sentiment shifts.
This aggregate rating is based on analysts' research of Cloudflare and is not a guaranteed prediction by Public.com or investment advice.
Cloudflare (NET) Analyst Forecast & Price Prediction
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