Cloudflare Before The Earnings: Valuation And Innovation

Oct. 28, 2021 5:10 PM ETCloudflare, Inc. (NET) StockNET105 Comments
From Growth to Value
Investing Group Leader

Summary

  • Next week, Cloudflare reports Q3 2021 earnings. There's no doubt that Cloudflare is valued extremely high.
  • Despite the very expensive stock, I won't sell a single share. I explain why.
  • More and more, Cloudflare is becoming the protector of the Internet, with a huge market share of 80% for reverse proxy. This is important for the roll-out of its products.
  • Cloudflare has ambitions to become the fourth public cloud, next to AWS, Azure and GCP, the cloud offerings of Amazon, Microsoft and Google. There also are much more innovations.
  • The constant innovation can spur the high growth of Cloudflare for a very long time.
  • This idea was discussed in more depth with members of my private investing community, Potential Multibaggers. Learn More »
Buitenaanzicht van het hoofdkwartier van Cloudflare, San Francisco

Sundry Photography/iStock Editorial via Getty Images

Introduction

Next week, on Nov. 4, Cloudflare (NYSE:NET) reports earnings. There's no doubt that the stock is priced extremely high, but still I won't sell before the earnings. In the first part of the article, I will explain my reasoning.

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        This article was written by

        From Growth to Value
        33.73K Followers

        From Growth To Value (Kris) is an individual investor with a long-term perspective. He targets high-quality disruptive businesses that have early multibagger potential. His rigorous research process provides him and his readers conviction in these companies.

        He invests personally in the ideas he shares and leads the investing group Potential Multibaggers. Features of the service include: best buy list, access to his personal portfolio and watchlist, 5+ articles of individual stock coverage, weekly reviews, regular webinars, overall quality scores, and a vibrant chat for discussions. Learn more.

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