What Cloudflare Investors Should Keep in Mind

By Emilio Sanchez • Thursday, December 14 18:13 • Permanent Link

Shares of Data Processing Services company Cloudflare jumped 5.3% today. With many investors piling into NET without a second thought, it may be a good idea to take a closer look at the stock. Here are some quick facts to get you started:

Cloudflare has moved 63.8% over the last year, and the S&P 500 logged a change of 20.8%
NET has an average analyst rating of buy and is 27.65% away from its mean target price of $66.32 per share
Its trailing earnings per share (EPS) is $-0.61
Cloudflare has a trailing 12 month Price to Earnings (P/E) ratio of -138.8 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $0.54 and its forward P/E ratio is 156.8
The company has a Price to Book (P/B) ratio of 40.64 in contrast to the S&P 500's average ratio of 2.95
Cloudflare is part of the Technology sector, which has an average P/E ratio of 35.0 and an average P/B of 7.92
The company has a free cash flow of $212.78 Million, which refers to the total sum of all its inflows and outflows of cash over the last quarter
CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, secure origin connection, and rate limiting products. It also offers website and application performance solutions, including content delivery, load balancing, DNS, agro smart routing, video stream delivery, content optimization, virtual backbone, always online, and cloudflare waiting room and registrar; and network services, which deliver network connectivity, security, and performance to customers as a service, including WAN, WARP, magic transit, magic firewall, cloudflare network interconnect, and spectrum. In addition, the company provides zero trust services, such as cloudflare access, cloudflare gateway, remote browser isolation, cloud access security broker, cloudflare area 1 email security, and data loss prevention products that protect, inspect, and privilege data. Further, it provides developer-based solutions consisting of cloudflare workers, pages, stream, and images, as well as Cloudflare Data Localization suite, a tool that set rules and controls at the network edge; durable objects and R2 object storage products; Consumer DNS Resolver, a consumer app to browse the Internet; and consumer VPN for consumers to secure and accelerate traffic on mobile devices. The company serves customers in the technology, healthcare, financial services, consumer and retail, and non-profit industries, as well as government. CloudFlare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.