What It Does: Cloudflare operates a global edge network spanning 300+ cities that provides CDN, DDoS protection, DNS, zero-trust security, and serverless compute. Over 20% of all websites use Cloudflare. The company has expanded aggressively from its security roots into a full developer platform (Workers, R2 storage, D1 database), aiming to become the fourth major cloud alongside AWS, Azure, and GCP. Its network processes 57+ million HTTP requests per second.
How the Stock Looks: NET trades near $120 in mid-April 2026. The stock has been volatile, reflecting the market’s struggle to value a high-growth, not-yet-profitable-at-scale company. Revenue is growing 29% annually, with large customer growth accelerating. Gross margins are strong at 78%, but operating margins remain in the low single digits as the company invests heavily in network expansion and product development.
What Analysts Are Saying: 22 analysts rate NET a Buy with an average price target of $145. The range spans $85 to $200. Piper Sandler and Wells Fargo are vocal bulls, arguing that Cloudflare’s zero-trust and developer platform TAM could reach $100B+. Bears cite persistent operating losses, heavy stock-based compensation, and competition from Akamai and Zscaler. But Cloudflare’s product velocity — shipping 30+ features per quarter — keeps it ahead of the pack.
