What Is Happening With Cloudflare Stock?

Cloudflare (NET)’s stock skyrocketed, fueled not just by a 28% revenue boost and a near doubling of its valuation multiple, but by a potent mix of earnings surprises, analyst praise, expanding partnerships, soaring cybersecurity needs, and cutting-edge AI innovations. The momentum is just beginning.

So what is happening here? The stock price jumped 143%, driven by a 28% rise in revenue and a 94% surge in the P/S multiple. These shifts set the stage for the key business developments ahead.

Before we get into details of events that led to stock surge, here is what market wisdom says: A single stock can be risky, but there is a huge value to a broader, diversified approach. Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.

Here Is Why Cloudflare Stock Moved

• Strong Earnings Beats: Exceeded revenue/EPS expectations in Q3/2024, Q4/2024, and Q3/2025.
• Analyst Upgrades: Analysts raised price targets and maintained ‘Buy’ ratings, signaling strong future.
• Partner Program Growth: Expanded partner program, accelerating channel revenue growth by 174%.
• Cybersecurity Demand: Rising DDoS attacks and cyber threats increased demand for Cloudflare security.
• AI Product Innovation: Launched new AI defenses, enhanced AI platform, and AI-driven business models.

Our Current Assesment Of NET Stock

Opinion: We currently find NET stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell NET Stock to see what drives our current opinion.

Risk: To get a real sense of risk, check how much NET fell during major market shocks. It dropped about 32% during the Covid pandemic and took a much steeper hit of around 83% in the inflation shock. Even with all the positive growth stories, the downside during crises can be sharp. Quality and fundamentals matter, but when markets turn, big drops like these show few stocks are truly safe.

NET stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.