Analysts expect this cloud company to grow by 58.3% this year.
Cloudflare, Inc. (NET)
From Cabot Global Stocks Explorer
Cloudflare (NET) shares began the week strong, hitting 30 before coming back with the market to 27 and change. Looks like there may be some resistance at 30.
Recently, NET reported strong first-quarter numbers.
Sales in the U.S. region climbed 44% year over year and represent 40% of total revenue and 62% year-over-year surge in its international business. Total revenue was $91.3 million, increasing 48% year over year and its gross margin was 77%. The company’s loss from operations due to higher development spending was $36.1 million, compared to $17.1 million in the first quarter of 2019.
The company’s net loss per share was $0.11 as it reported a cash and equivalent position of $588 million. In addition, during the first quarter, the company added 250,000 new customers representing a year-over-year jump of 40%.
This aggressive cybersecurity recommendation went public last year. The company is growing fast and appears to be gaining market share and some analysts expect its revenue to double by 2022.
If you have not yet invested in NET, I suggest you do so and consider pairing it with the below more conservative cybersecurity play, an ETF called BUG. BUY A HALF.
Carl Delfeld, Cabot Global Stocks Explorer, cabotwealth.com, 978-745-5532, May 21, 2020