I am looking forward to $PLTR (-3.33%) , $META (-1.11%) , $NET (-2.1%) and $SREN (-0.09%) ....

• Cloudflare $NET (-2.1%) reported earnings per share of USD 0.19 for the fourth quarter, which is USD 0.01 better than the analysts' estimate of USD 0.18.

• Revenue for the quarter was USD 459.9 million, above the consensus estimate of USD 452.04 million.

Forecast 2025

• Cloudflare expects earnings per share of USD 0.16 for the first quarter of 2025, which is below the analyst estimate of USD 0.18.

• Cloudflare expects revenue for the first quarter of 2025 to be between USD 468.00 million and USD 469.00 million, which is below the analyst estimate of USD 474.10 million.

• For the full year 2025, Cloudflare forecasts earnings per share of USD 0.79 to USD 0.80, which is above the analyst estimate of USD 0.74.

• Cloudflare expects full-year 2025 revenue of USD 2.09 billion, slightly below the analyst estimate of USD 2.10 billion.

$NET (-2.1%) Earnings will come in a week.

Since Cloudflare has performed extremely well in recent months, I have partially sold a little less than my stake (approx. 40%)

Let's see what the earnings say. If the price comes back a little, I'll buy again.

How do you think the earnings will be?

... of infrastructure software.

The low cost of training and inference of the new model could trigger a new wave of AI adoption by improving the economics of AI projects and thus enabling wider use.

Increasing demand through lower costs:

DeepSeek's model offers superior inference performance at a disruptively low cost, which is expected to increase demand for AI solutions.

Bernstein points to previous examples, such as OpenAI's 4o-mini model, which promised lower prices with higher quality and increased usage by 50% within a quarter. Such effects could also occur again with DeepSeek.

Winners at the software infrastructure level:

Despite lower computational intensity, higher demand leads to opportunities for software vendors that provide the infrastructure for AI projects. This includes areas such as:

Data infrastructure (e.g. Confluent $CFLT (-5.23%) )

Identity management (e.g. Okta $OKTA (-1.66%) )

Observability tools (e.g. Datadog $DDOG (-4.67%) )

Communication technology (e.g. Twilio $TWLO (-2.53%) )

Browser integration and delivery (e.g. Cloudflare $NET (-2.1%) )

Platforms for service desk AI projects (e.g. ServiceNow $NOW (-2.3%) ) could also benefit, especially if they introduce a consumption-based pricing model that covers inference costs.

Hi, I want to use Sunday to ask you for your opinion on my portfolio. I'll give you my reasons for the positions briefly and concisely.

About myself. I'm 25 years old and am studying to become a mechanical engineer. That's why I'm currently holding a large cash position to bridge my time at school. The money will be invested once I have finished. I have only been more stable in my strategy for a year and made the typical beginner mistakes before that. I also hope to beat the market with my shares, but have been proven wrong in recent years. That's why I'm starting to build up a core.

For the rest, I am focusing on companies with a strong balance sheet and want to overweight the tech sector

$AMZN (-2.39%) I have due to the broad positioning. They have strong growth and, with AWS, an excellent market position in a future-oriented sector

$GOOGL (-2.28%) is for me one of the strongest companies in the world, they have an almost monopoly-like position in some areas

$ASML (-0.72%) an absolute monopolist in the chip sector, here I am betting on the blade manufacturer because I understand the system itself. I can't predict who will be ahead of the chip manufacturers in a few years' time. However, it won't work without the machines from Asml

$$UNH (-6.94%) has excellent growth opportunities in the USA as many people there do not yet have health insurance

$NOVO B (+5.32%) I bought with the view that diabetes cases will unfortunately increase worldwide and the weight loss injection sector will also continue to grow. It's just easier to take injections than to change your life fundamentally.

$CRWD (-6.19%) I see one of the strongest future sectors in the world. I picked them up when they crashed, because you can see in which areas they are involved everywhere. Without the crash I would have bought a sector ETF here.

$LIN (-0.84%) I expect the industrial gas sector to continue to grow steadily in the future. In addition, there is only one serious competitor in this market. I am not expecting a growth rocket here, but a stable anchor in the portfolio

$MC (+0.4%) Luxury always works and I think LVMH is well positioned here. Hermes would have been my other candidate, but it is too expensive for me.

$IWDA (-1.03%) I have been running a savings plan for a few months as I only really had a plan for how I wanted to invest about a year ago. It should become my core in the future, as you can clearly see that I have not been able to outperform the indices in recent years. Current savings rate is 500€

$BTC (+0.74%) I consider this to be future-proof after the Etfs and the announcements from various countries. This is also saved monthly with €75.

On the watch list would be stocks like:

$MSCI (+1.13%)

$MSFT (-1.57%)

$NET (-2.1%)

$UBER (-2.45%)

I look forward to constructive opinions and suggestions.

Hi folks,

I would like to add a cybersecurity share to my portfolio this year. Since I'm sure some people are already invested here and I'm not yet familiar with the market (apart from the growth potential), I'd be interested in your opinion.

My favorite at first glance would probably be Palo Alto, even if I first have to read up on why there was such a sharp drop in profits. Which player would be your pick and why?

$PANW (-3.05%)

$CRWD (-6.19%)

$FTNT (-3.08%)

$NET (-2.1%)

If things continue like this, then $NET (-2.1%) the ATH again soon 👀 entered at €58

Valuation has now run too far away from the fundamental figures 👀🤑

Cloudflare Q3 2024 $NET (-2.1%)

Financial performance

• Revenue: Cloudflare reported revenue of $430.1 million for the third quarter, an impressive 28% increase year-over-year. This growth signals strong demand for Cloudflare's services and an increasing presence in the market.
• Net Income (Loss): GAAP net loss was $15.3 million, an improvement from the loss of $23.5 million in the same quarter of 2023. However, on a non-GAAP basis, net income was $72.6 million, compared to $55.3 million in the prior year, showing a positive trend in terms of profitability.
• Operating income: GAAP operating loss was $30.8 million, representing 7.2% of revenue, while non-GAAP operating income was $63.5 million, or 14.8% of revenue. These results reflect Cloudflare's efficiency in cost management and strong operational performance.

Balance Sheet Overview

• Total assets: As of September 30, 2024, total assets were $3,062.7 million, an increase from $2,759.8 million at year-end 2023.
• Liabilities: Total liabilities increased to USD 2,089.7 million, compared to USD 1,996.7 million at the end of 2023, largely due to the increase in convertible senior notes.
• Shareholders' equity: Total equity increased to USD 973.1 million compared to USD 763.0 million at the end of 2023, indicating a strengthened financial base.

Income details

• Gross profit: GAAP gross profit was USD 334.1 million with a gross margin of 77.7%, while non-GAAP gross profit was USD 339.1 million with a gross margin of 78.8%. These figures demonstrate a stable and robust margin structure, which is particularly important for Cloudflare's industry.
• Net loss per share: GAAP net loss per share was $0.04, an improvement from $0.07 in the third quarter of 2023. Non-GAAP earnings per share were $0.20, up from $0.16 in the year-ago quarter, underscoring the positive trend in profitability.

Cash flow overview

• Operating cash flow: Net cash provided by operating activities amounted to USD 104.7 million, a significant increase compared to USD 68.1 million in the third quarter of 2023.
• Free cash flow: Free cash flow amounted to USD 45.3 million, or 11% of revenue, compared to USD 34.9 million, or 10% of revenue, in the same quarter last year. This increase demonstrates Cloudflare's ability to generate cash and strengthen liquidity.

Key Performance and Profitability Metrics

• Free Cash Flow Margin: Free cash flow margin was 11% in the third quarter of 2024, up from 10% in the year-ago quarter.
• Operating margin: Non-GAAP operating margin was 14.8%, compared to 12.7% in the prior year quarter, indicating improved operating efficiency.

Competitive position

Cloudflare is establishing itself as a leader in the connectivity cloud, with 35% of Fortune 500 companies as paying customers. This strengthens its position against competitors and demonstrates high market penetration with large customers.

Forecasts and management comments

• Revenue forecast: Cloudflare expects Q4 2024 revenue of $451 million to $452 million, signaling continued growth.
• Non-GAAP operating income: Non-GAAP operating income is expected to be between $57 million and $58 million for the fourth quarter.

Risks and opportunities

• Risks: Key risks include negative macroeconomic conditions, geopolitical tensions and challenges in customer retention and acquisition.
• Opportunities: Cloudflare sees opportunities for growth through strategic initiatives and innovations in product development, which strengthens its position as a technology leader.

Summary of the results

Positives:

Strong revenue growth: Sales increased by 28% year-on-year, indicating increasing demand and market presence.

Improved non-GAAP profitability: Both non-GAAP net income and operating income show a positive development, supported by effective cost management.

Significant increase in operating cash flow: Operating cash flow increased significantly to USD 104.7 million, strengthening financial stability.

Expansion of customer base: Cloudflare gained a significant number of Fortune 500 customers, underlining its attractiveness to large enterprises.

Solid balance sheet structure: Increased assets and equity demonstrate a strengthened financial position.

Negative aspects:

Continued GAAP losses: Despite improvements, Cloudflare continues to report GAAP losses, indicating profitability challenges.

High stock-based compensation: Significant stock-based compensation is hurting GAAP earnings and could hurt shareholders in the long run.

Increased liabilities: The increase in convertible bonds in particular increases the debt ratio and poses financing risks.

Macroeconomic and geopolitical risks: These could affect demand and the company's earning power.

Dependence on non-GAAP measures: Cloudflare relies heavily on non-GAAP measures to achieve a positive financial presentation, which could affect transparency.

Earnings next week

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