Cloudfare Inc. (NET:NSD) Beats on Earnings, Boosts Outlook

American Analyst Ratings for Thursday January 18th

Cloudfare Beats on Earnings

Cloudflare, a San Francisco-based web security and performance optimization company, has reported better-than-expected earnings and revenue for the fourth quarter of 2022. The positive results sent its stock soaring  over 10% in after-hours trading as a result. The company reported a profit of 6 cents per share, up from zero a year earlier, and revenue growth of 42% to $274.7 million. This beat analyst predictions of 5 cents per share and 41% revenue growth to $274.1 million.

Cloudflare’s outlook for 2023 also exceeded expectations, projecting earnings per share of 15 cents to 16 cents and revenue of $1.33 billion to $1.34 billion, compared to analysts’ predictions of 15 cents per share and revenue of $1.31 billion. RBC Capital analyst Matthew Hedberg attributed this success to the company’s focus on discipline and efficiency during an economic slowdown.

Founded in 2009, Cloudflare has been widely recognized for its ability to speed up and secure web applications routed through its intelligent global network. The company’s ties to artificial-intelligence startup OpenAI have also caught the attention of some analysts, who believe that this could lead to additional growth in 2023. However, there are concerns among investors that the company may lose revenue from cryptocurrency customers.

Heading into the earnings report, Cloudflare’s stock had already advanced 29% in 2023 and currently boasts a Relative Strength Rating of 65 out of a possible 99, according to IBD Stock Checkup. Despite some uncertainties in the market, Cloudflare’s strong performance in the fourth quarter has reassured investors and bodes well for the company’s future growth.

NET Stock Price Forecast & Analysis

Cloudflare Inc., a San Francisco-based company providing web security and acceleration services, has recently seen positive changes in its stock price. With an average target price of USD 67.23 among 22 analysts, the company’s future stock performance is expected to be bullish over the next 12 months. The average analyst rating for Cloudflare Inc is “Buy,” indicating a positive outlook for the company’s stock performance.

However, Stock Target Advisor, a stock analysis platform, has a slightly bearish outlook for Cloudflare Inc, with 4 positive signals and 7 negative signals. Despite this, the company’s stock price has seen positive changes over the past week, with an increase of 4.61%. Over the past month, the stock price has risen by 45.54%, indicating a positive trend in the company’s stock performance.

It is important to note that despite the recent positive changes, the stock price of Cloudflare Inc has decreased by 47.19% over the past year. This highlights the volatility of the stock market and the need for caution when investing in individual stocks. It is always recommended to conduct thorough research and seek the advice of a financial advisor before making any investment decisions.

In summary, while the average analyst target price and rating for Cloudflare Inc is positive, with an expected target price of USD 67.23 and a “Buy” rating, it is important to consider the slightly bearish outlook from Stock Target Advisor and the recent decrease in the company’s stock price over the past year.

 

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