Cloudflare: The New Traffic Cop Of The Internet

Jul. 03, 2025 3:19 AM ETCloudflare, Inc. (NET) StockNET, AMZN, ORCL
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Summary

  • Cloudflare is uniquely positioned at the intersection of internet infrastructure and AI, with its Workers platform and MCP protocol driving new developer and enterprise adoption.
  • The shift toward an AI-driven internet benefits Cloudflare, as its edge network and serverless offerings enable secure, scalable, and low-latency AI application deployment.
  • Financials show strong growth: 26% YoY revenue increase, expanding large customer base, and high-margin incremental revenue from AI services with minimal additional capex.
  • Despite competition and valuation concerns, Cloudflare’s platform advantage and structural internet role make it a top infrastructure play for investors seeking AI exposure.

Exterior view of Cloudflare headquarters, San Francisco

Sundry Photography

The Internet itself is shifting from what has been a very much a search-driven Internet to what is increasingly an AI-driven Internet. Matthew Prince, Cloudflare CEO/Co-founder (Q1 2025 Earnings Call)

Intro

Cloudflare (NYSE:NET) quietly powers much

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