
Cloudflare (NET) Stock Forecast & Price Target
Cloudflare (NET) Analyst Ratings
Bulls say
Cloudflare's robust 33% year-over-year increase in paying customers reflects strong market demand, contributing to a significant rise in revenue of 31% year-over-year to $562.0 million, which outperformed management's guidance. The company experienced a notable improvement in key metrics, with its Remaining Performance Obligations (RPO) growing 42.6% year-over-year, indicating a healthy future revenue stream, and a Net Dollar Retention Rate (NDRR) of 119% demonstrating strong customer loyalty and upselling potential. Additionally, Cloudflare's successful transition towards enterprise sales and its increasing sales productivity, highlighted by record bookings from partner-initiated opportunities, further underscores the firm's positive growth trajectory and potential opportunities in the AI space.
Bears say
The key points contributing to a negative outlook on Cloudflare's stock include uninspiring incremental profitability, which is expected to lead to downward adjustments in 2026 bottom-line targets. Additionally, a decrease in gross margin due to a higher mix of paid versus free traffic has resulted in increased allocation expenses, reflecting ongoing challenges in cost management. Lastly, investor sentiment towards high-growth companies is deteriorating, presenting a risk for Cloudflare, which currently holds one of the highest valuations in the software space, further complicated by potential negative impacts from trade discussions affecting its joint venture with JD.
This aggregate rating is based on analysts' research of Cloudflare and is not a guaranteed prediction by Public.com or investment advice.
Cloudflare (NET) Analyst Forecast & Price Prediction
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