Cloudflare NET
Cloudflare is a technology company that offers a global network platform to improve the security, performance, and reliability of websites and applications, with a subscription-based business model. Cloudflare shows exceptional revenue growth of 35.90%, but its valuation is extremely demanding (forward P/E 208.23, P/S 49.47) and its profitability is negative (operating margin -7.60%), making it highly vulnerable to a rising interest rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Cloudflare is a technology company that offers a global network platform to improve the security, performance, and reliability of websites and applications, with a subscription-based business model. Cloudflare shows exceptional revenue growth of 35.90%, but its valuation is extremely demanding (forward P/E 208.23, P/S 49.47) and its profitability is negative (operating margin -7.60%), making it highly vulnerable to a rising interest rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 2.5 |
| Quality / Moat | 3.2 |
| Valuation | 1.3 |
| Growth | 9.4 |
| Dividend | 1.5 |
| Momentum | 8.4 |
| Risk & Context | 2.7 |
OVERALL SCORE: 4.0/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and renewed concerns about AI security are pressuring high-duration technology stocks like Cloudflare, whose forward P/E of 208.23 amplifies sensitivity to higher discount rates.
News considered in the analysis
- Cloudflare (NET) Stock Trades Down, Here Is Why — Caída de la acción sin un catalizador fundamental claro, refleja el sentimiento negativo del sector tecnológico.
- Datadog Climbs 6%, Approaches 52-Week High While Software Group Slips; Oracle and Cloudflare Decline — Debilidad relativa dentro del sector de software, con Cloudflare cayendo mientras otros suben, lo que indica presión específica.
- Zscaler Falls Amid Executive Change As Cybersecurity Stocks Pull Back — El retroceso del sector de ciberseguridad afecta a Cloudflare, aunque el detonante sea un competidor.
- Underweight Position in Cloudflare (NET) Creates Relative Headwind — La posición infraponderada de los inversores institucionales puede generar presión vendedora relativa.
- Can Unified Platform Strategy Boost Cloudflare's Long-Term Growth? — Análisis positivo sobre la estrategia de plataforma unificada, que podría impulsar el crecimiento a largo plazo.
Verdict: Hold, given the strong growth but extreme valuation and sensitivity to interest rates.
Main risk: The extremely high valuation (forward P/E 208.23) combined with the lack of profitability (operating margin -7.60%) exposes it to a severe correction if growth decelerates or interest rates continue to rise.
Other Technology companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →