Cloudflare Could Become a Key Internet Toll Road
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- New Revenue Model: Cloudflare's introduction of Pay Per Crawl offers a fascinating new revenue stream that is expected to significantly enhance income potential as AI agents drive increased web traffic, thereby strengthening its competitive position in the market.
- Valuation Challenges: Despite the promising outlook of the new model, Cloudflare's valuation faces pressure, with intensified competition and insider selling potentially undermining investor confidence and leading to increased stock price volatility.
- Market Competition: As AI technology becomes more prevalent, Cloudflare will encounter fierce competition from other tech companies in providing web services, which could impact its market share and profitability.
- Investment Recommendations: Analysts suggest that investors pay attention to Cloudflare's potential growth opportunities, particularly in the context of AI-driven traffic growth, while exercising caution in assessing its valuation and market environment.
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Analyst Views on NET
Wall Street analysts forecast NET stock price to fall
25 Analyst Rating
15 Buy
10 Hold
0 Sell
Moderate Buy
Current: 268.830
Low
131.00
Averages
253.24
High
318.00
Current: 268.830
Low
131.00
Averages
253.24
High
318.00
About NET
Cloudflare, Inc. is a connectivity cloud company. The Company delivers a range of services to businesses of all sizes and in all geographies, enhancing the performance of business-critical applications. Its full suite of products consists of application services that help deliver security, performance, and reliability for any organization's applications connected to the Internet, including Websites and application programming interfaces (APIs) and its secure access service edge (SASE) platform, which contains its suite of and workplace security services and network services solutions to help ensure traffic in and out of an organization’s network and devices is verified and authorized and data is protected and secured, as well as to securely connect data centers, cloud services, and branch offices to an organization with its connectivity cloud. The Company also offers developer-based solutions which build and deploys serverless and artificial intelligence applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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