Cloudflare Stock Surged 50%, Here’s Why
Cloudflare (NET)’s stock soared 54%, fueled not just by a sharp revenue jump and richer valuations, but also by a string of strong earnings beats, fresh partnerships, and a wave of bullish analyst sentiment. Let’s unpack the key moves behind this big market leap.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 5012025 | 1262026 | Change | |
|---|---|---|---|
| Stock Price ($) | 122.6 | 189.3 | 54.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,669.6 | 2,013.4 | 20.6% |
| P/S Multiple | 25.3 | 32.9 | 30.0% |
| Shares Outstanding (Mil) | 344.0 | 349.3 | -1.5% |
| Cumulative Contribution | 54.4% |
So what is happening here? The stock price jumped 54%, driven by a 21% revenue boost and a 30% rise in valuation multiple. Let’s dive into the key events behind these shifts.
Here Is Why Cloudflare Stock Moved
- Strong Q3 2025 Earnings: Cloudflare reported robust Q3 2025 revenue growth of 31% and an EPS beat, increasing stock by 13.84%.
- Q1 2025 Earnings Match: Q1 2025 earnings met EPS estimates, resulting in a 6.46% increase in stock price.
- New Products & Partners: Launch of Cloudforce One security suite and partnerships with Visa/Mastercard boosted sentiment.
- Analyst Sentiment: Analysts maintained a ‘Buy’ consensus, but concerns about profitability and high valuation were noted.
- Q2 2025 Earnings Reaction: Despite an EPS beat for Q2 2025, the stock price decreased by 3.65% after the report.
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.