Cloudflare Stock Pulls Back: Opportunity Or Warning Sign?

Oct. 03, 2021 7:57 AM ETCloudflare, Inc. (NET) StockNET86 Comments
Bradley Guichard
9.93K Followers

Summary

  • Cloudflare pulled back heavily over the last 10 days as tech stocks were punished nearly across the board.
  • NET stock has experienced sharp pullbacks since IPO; however, is still valued near July 2021 highs with the market looking fearful.
  • Is the recent pullback a warning sign to investors or another bump in the road opportunity to increase alpha?

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, has a vast and growing total addressable market (TAM) and the stock has reflected these

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of NET 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.

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