Cloudflare expands AI capabilities, introducing new tools and security products, facing competition but showing growth potential.

From Nasdaq.: 2024-09-24 11:18:00

Cloudflare’s stock (NET) has outperformed the Zacks Internet Software Industry and the S&P 500 index in the past three months. The company’s AI-enabled portfolio strength has led to a 6.1% gain in its shares as investors show confidence in its financial performance.

Cloudflare has launched an AI Audit toolset to help creators monitor the use of their content on other websites. The toolset can track AI bots, block unauthorized data fetching, and aid in negotiations to protect creators’ rights. Cloudflare is also developing features to help set fair prices for content used by AI companies.

NET has introduced security products like Firewall for AI and Defensive AI this year. Collaborations with companies like Hugging Face, CrowdStrike, Microsoft, and NVIDIA have expanded Cloudflare’s AI capabilities, empowering developers to deploy AI applications easily and prevent cyber threats.

Cloudflare faces intense competition from established players in the cybersecurity market. To stay relevant, the company continues to invest in broadening its capabilities despite impacting its operating margins. The company’s recent expansion into the AI space may drive renewed growth in the future.

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Read more at Nasdaq.: Cloudflare Expands AI Portfolio: Should You Hold or Fold the Stock?