From Nasdaq: 2024-11-19 08:47:00

Cloudflare’s shares (NET) have surged 22.1% in the past six months, surpassing the Computer Technology sector, Internet Software industry, and S&P 500. The company’s AI product enhancements and partnerships with industry leaders are driving this growth, with projected revenues for 2024 expected to reach $1.661-$1.662 billion.

Cloudflare is strengthening its presence in the AI space through collaborations with Hugging Face Hub, CrowdStrike (CRWD), Microsoft (MSFT), and NVIDIA (NVDA). These partnerships bring AI capabilities to Cloudflare’s global network, enhancing its security offerings and expanding its AI-oriented services beyond 2024.

Despite its positive outlook, Cloudflare faces stiff competition from established cybersecurity giants like Palo Alto, Check Point, F5, and Fortinet. To stay competitive, the company must continue investing in broadening its capabilities and expanding its international presence, albeit affecting its operating margins.

Investors are advised to hold Cloudflare’s stock (Zacks Rank #3) due to its strong market position and AI expansion. However, caution is advised due to the stock’s high valuation, indicated by a Zacks Value Style Score of F. Keep an eye on the company’s performance amidst the competitive cybersecurity landscape and ongoing investments in AI innovation.



Read more at Nasdaq: Cloudflare Stock Rises 22% in 6 Months: What Should Investors Do?