Cloudflare (NYSE:NET) is a well-managed, modern, well-positioned, and dominant cloud and network security company. I'm bullish not only on the business but the sector in general. While my valuation analysis shows a substantial margin of safety and a 20%+ five-year
Cloudflare: This High-Growth Investment Carries One Big Risk
Summary
- Forecasting 25% annual revenue growth, Cloudflare is expected to reach $5.07 billion in revenue by 2029, with a 25% EBITDA margin, aligning with mature peers in cloud security.
- An estimated $101.4 billion enterprise value by 2029 implies a 21.1% CAGR, but rich multiples, volatility, and execution risks necessitate caution, especially for conservative investors.
- With a robust market position and capable management, Cloudflare is a Moderate Buy, better suited for a growth-focused portfolio due to valuation-driven volatility risks.
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