Fidelity Growth Strategies Fund sees continued growth potential in Cloudflare (NET) despite recent fluctuations.

From Yahoo Finance: 2025-07-03 08:09:00

Fidelity Investments released its first quarter 2025 investor letter for the Fidelity Growth Strategies Fund, a domestic equity strategy focusing on mid-cap growth investments. The fund’s Retail Class shares returned -8.03% in Q1, underperforming the benchmark Russell Midcap Growth Index. U.S. mid-cap growth stocks saw fluctuations due to post-election concerns.

Cloudflare, Inc. (NYSE:NET) was highlighted in the investor letter for its one-month return of 8.61% and 119.61% gain over the last 52 weeks. On July 2, 2025, Cloudflare, Inc. (NYSE:NET) closed at $185.64 per share with a market cap of $64.345 billion.

Fidelity Growth Strategies Fund mentioned an untimely position in Cloudflare, Inc. (NYSE:NET) in its Q1 2025 letter, attributing a decrease to President Trump’s tariff announcement and liability concerns. Despite valuation pullback, the fund sees growth potential in the company.

Cloudflare, Inc. (NYSE:NET) is not among the 30 most popular stocks among hedge funds, with 65 portfolios holding the stock at the end of Q1. The company’s revenue for the first quarter increased 27% year-over-year to $479.1 million. While Cloudflare has potential, hedge funds see greater promise in AI stocks for higher returns.

Read more: Do You Believe in the Growth Potential of Cloudflare (NET)?