2024-05-03 14:14:17 ET
Summary
- Cloudflare reported strong growth in Q1, but the stock is down due to tepid guidance and high valuation.
- The company is benefiting from the growing demand for AI edge solutions and has rolled out GPUs in over 150 cities.
- The stock still trades at 15x sales targets while predicting decelerating growth.
Cloudflare, Inc. ( NET ) offers connectivity cloud services to secure customers networks. The stock is very volatile due to fast growth and maybe invalid assumptions on AI benefits. My investment thesis remains Neutral on the stock as it is still priced for perfection....
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Cloudflare: Still Priced For Perfection