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Cloudflare Inc

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Cloudflare Inc
NET Technology
$306.53 ▼ -1.49%
$4.64 today · as of 12 Sep 2026
49 S.I.F.T
S.I.F.T.™ Analysis
Red
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Caution – significant pillar weakness detected.
Last updated: 12 Sep 2026 · Confidence: 70%
Pillar Breakdown
🛡 Safety 50
Balance sheet or moat concerns are weighing on the score.
💰 Income 35
High cyclicality and lack of recurring revenue are limiting stability.
📊 Fundamentals 35
Strong growth but valuation is elevated.
⏱ Time 60
Shorter track record or weaker tailwinds.
🧠 Munger Reality Filter AVOID

Cloudflare possesses a competitive edge in global edge networking and cybersecurity, yet this is undermined by persistent unprofitability and weak financial metrics.

Strengths: Time_in_market score of 60 reflecting established operations, Large market cap exceeding $111 billion, Safety pillar at 50 providing moderate downside protection
Risks: Negative ROE of -3.19 showing ongoing losses, High debt_to_cfo ratio of 7.66 indicating leverage risk, Zero dividend yield and warchest_pct with low income_stability pillar
📈 Price History

Business Overview

Key Metrics
ROE (10yr)
-3.2%
Debt / CFO
N/A
Div. Yield
0.00%
FCF Growth
0.0%

FAQ

Financial Details

Recent Quarters
Quarter Revenue Gross Profit EPS
No quarterly data available.
Segment Breakdown
Data Center 56%
Client 28%
Gaming 9%
Embedded 7%

Management

Leadership Summary
  • Deep technical and operational expertise from co-founders driving product innovation in security and performance.
  • Proven ability to scale infrastructure globally while maintaining high reliability and customer growth.
  • Strong focus on financial discipline and transparent investor communications post-IPO.
  • Emphasis on ethical AI and internet security initiatives aligned with company mission.
Track Record

Led Cloudflare from startup to public company with over $1B ARR, expanding to 300+ cities worldwide and achieving consistent double-digit revenue growth.

Recent Commentary

“CEO Matthew Prince highlighted AI-powered security features and Zero Trust momentum in Q2 2024 earnings, noting record customer additions and margin expansion.”

Analyst Reviews & Risks

Wall Street Consensus
4.6
out of 5 (Strong Buy)
Average Target: $485.00
Key Investment Risks
  • Negative ROE of -3.19 showing ongoing losses
  • High debt_to_cfo ratio of 7.66 indicating leverage risk
  • Zero dividend yield and warchest_pct with low income_stability pillar
Ownership & Sentiment

Institutional Ownership: N/A%

Short Interest: N/A%

AI Investment Thesis
  • Cloudflare is positioned to capture secular growth in edge computing, CDN, and cybersecurity as enterprises shift workloads to distributed architectures.
  • Consistent 30%+ YoY revenue growth driven by land-and-expand with large enterprise customers and broadening product suite including Zero Trust.
  • High gross margins (~78%) and scalable global network provide operating leverage toward sustained profitability.
  • AI inference and developer platform initiatives (Workers, R2) open new high-margin TAM beyond traditional security/performance.
  • Network effects from 300+ cities and anycast architecture create durable competitive moat versus legacy CDNs.
Key Catalysts & Risks
Catalysts
  • Q4/FY2024 earnings beats with accelerating large-customer adds and margin expansion.
  • New AI product launches and partnerships driving incremental ARR.
  • Potential S&P 500 inclusion or major analyst upgrades lifting valuation multiples.
Risks
  • Intense competition from AWS CloudFront, Akamai, and Fastly eroding pricing power.
  • Premium valuation (~10x 2025 sales) leaves limited margin of safety on growth misses.
  • Ongoing path to GAAP profitability remains sensitive to stock-based compensation and macro IT spending cuts.
Peer Comparison
Company P/E Rev Growth Gross Margin ROE Debt/Equity
NVDA N/A N/A% N/A% 60.22% 0.68
INTC N/A N/A% N/A% -5.53% 6.65
AVGO N/A N/A% N/A% 16.36% 2.72
AMD N/A N/A% N/A% 7.62% 1.83
  • ...

    Investors

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  • Ticker

     NET
  • ...

    Sector

     Technology

  • Current Price

     $306.53

  • S.I.F.T. Score

     49
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