From Yahoo Finance: 2025-03-25 10:43:00

Cloudflare stock surged 4.5% after Bank of America double-upgraded it to buy, citing the company’s AI business. Cloudflare’s security products have a 33% market penetration. The company is evolving from a cybersecurity stock to an AI stock, with predictions of 30% annual growth over the next three years.

Bank of America raised Cloudflare’s price target to $160, noting the company’s AI-as-a-service offering is resonating with customers. Cloudflare has maintained a 36.5% average annual revenue growth rate over the last three years. However, with a high valuation, some find the stock too expensive.

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Bank of America is an advertising partner of Motley Fool Money. Rich Smith has no position in mentioned stocks. The Motley Fool has positions in and recommends Bank of America and Cloudflare.

Read more: Why Cloudflare Stock Popped on Tuesday