Where Will Cloudflare Stock Be In 5 Years? Examining Opportunities, Metrics And Valuation

Aug. 29, 2021 2:49 PM ETCloudflare, Inc. (NET) Stock, , , , 28 Comments
Bradley Guichard
9.93K Followers

Summary

  • Cloudflare is an exciting company in a dynamic sector with a high valuation, lots of risk and massive potential.
  • The secular possibilities are tremendous and the company has shown great foresight in increasing their addressable market and growing the large customer base.
  • I parsed significant SaaS metrics to compare to peers and look forward towards potential profitability using estimated growth rates and management estimates.
  • The stock has already rewarded shareholders handsomely, while stretching the valuation, but there is a path for further "NET" gains.

Exterior view of Cloudflare headquarters, San Francisco
Sundry Photography/iStock Editorial via Getty Images

Investment Thesis:

Cloudflare, Inc (NYSE:NET) ((also "the Company" hereafter)) is an innovative company in the evolution into the cloud, edge computing and the internet of things ((IoT)). The Company has experienced massive growth over the last five years

This article was written by

Bradley Guichard
9.93K Followers
If you are a medium to long-term investor looking for an analysis of equities focused on cash flow, growth, and other critical metrics from a financial professional who knows financial statements inside and out, consider giving me a follow.While I am Tech-focused, I have a diversified portfolio, including growth and value equities, REITs, and dividend stocks. I like to use options for income and risk management when the opportunity arises. I have over 15 years of experience in the market. I am a practicing CPA; however, I have learned about investing more from avid reading, market watching, experience, and of course, making mistakes over the years. Also, am an admitted Excel junkie. I believe Benjamin Franklin when he said: "An investment in knowledge pays the best returns," and Warren Buffet that "The most important quality for an investor is temperament, not intellect." I am constantly learning and focusing on long-term goals - even when the market misbehaves.  Thank you very much for reading, and please feel free to leave me a message in the comments or send a private message. All the best!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NET, CRWD, FTNT, PANW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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