Conestoga Capital Advisors released its second-quarter 2025 investor letter, noting a 3.46% net-of-fees return for the Conestoga Mid Cap Composite, trailing the Russell Mid Cap Growth Index’s 18.20% return. Investor interest shifted to high-beta and AI stocks in the second quarter, creating challenges for the Mid Cap Strategy. Cloudflare, Inc. (NYSE:NET) was highlighted as a top stock pick, with a one-month return of 1.32% and shares gaining 156.46% over the last 52 weeks. The stock closed at $198.42 on July 25, 2025, with a market cap of $68.774 billion. Conestoga Capital Advisors initiated a position in Cloudflare, Inc. (NYSE:NET) in the second quarter, citing the company’s strong position in securing over 20% of global internet traffic and a $200B+ addressable market. The company is expected to see durable revenue growth and expanding margins, making it a compelling long-term investment. Cloudflare, Inc. (NYSE:NET) was held by 65 hedge fund portfolios at the end of the first quarter, with revenue increasing 27% year-over-year to $479.1 million. While Cloudflare, Inc. (NYSE:NET) has potential, certain AI stocks may offer greater upside potential with less downside risk, according to Insider Monkey’s database.

Read more at Yahoo Finance: What Makes Cloudflare (NET) a Compelling Long-Term Compounder?