Cloudflare (NYSE: NET) has become one of the key players when it comes to web infrastructure and cyber security. The company protects websites, applications and APIs from attacks, makes everything run faster and provides developers with tools to build new digital solutions. With over 300 data centers worldwide and billions of requests processed daily, Cloudflare is no longer just a small tech provider - it's an essential part of the internet for businesses of all sizes.
Why the numbers add upCloudflare generated $479 million in revenue in the first quarter of 2025 - 27% more than the previous year. For the year as a whole, revenue of around 2.09 billion US dollars is expected, also an increase of 27%. Particularly exciting: Cloudflare has signed the largest contract in its history to date - for more than 100 million US dollars, mainly via the developer platform "Workers". This shows that Cloudflare is not only growing, but that customers are staying on board for the long term - and that gives the company stability. Recurring revenue from subscriptions makes the business model more predictable, even when short-term price fluctuations occur.
Technical situation: The share has gained considerable momentum on the chart. The price/sales ratio is around 10, which is moderate for a growth stock like Cloudflare. Analysts see the share at around USD 232 in the medium term, with some even predicting up to USD 268. Technical indicators show that institutional investors are still interested in the share. Setbacks offer entry opportunities for long-term investors who are prepared to ride out volatility. Moving averages and momentum indicators also signal medium-term stability, which reduces the risk of short-term sell-offs.
Innovation and future prospectsCloudflare is not a traditional security company. The company is investing heavily in AI solutions, automated e-commerce tools and is planning a USD-pegged stablecoin called "NET Dollar" to enable machine-based payments. Such initiatives show that Cloudflare is tapping into new revenue streams and can grow far beyond traditional web infrastructure in the long term. At the same time, the company is positioning itself as a central platform in the field of digital payments, cloud services and developer solutions - a growth area that is likely to become significantly more important in the coming years.
Quality and competitive advantagesCloudflare scores points not only for growth, but also for the quality of its business model. The infrastructure is robust, the customer networks are strong and the market position is clearly leading. The company benefits from network effects: The more customers use Cloudflare, the more valuable the platform becomes for new customers. In an environment where cybersecurity, performance optimization and cloud services are becoming increasingly important, Cloudflare is ahead of the game. Of course, there are risks: competition from other cloud and security providers, regulatory hurdles in various countries or economic fluctuations can weigh on the share price in the short term.
Long-term potentialIf you take a longer-term view of Cloudflare, you will recognize the mix of strong sales growth, innovation and market leadership. The share has everything that makes a potential tenbagger: new business areas, strong customer loyalty, technological pioneering role and solid analyst ratings. Of course, it remains a growth company with certain fluctuations, but for long-term investors Cloudflare could offer the opportunity to multiply their position over the years.
Personal perspectiveI myself have opened a position in Zollschock in my portfolio, which is now up around 60%. Of course, Cloudflare is already expensively valued and volatile, but I believe that the share can really go through the roof in the long term as soon as profitability increases further and new business areas such as AI and digital payments deliver revenue contributions. For me, Cloudflare is a top pick for long-term investors who are prepared to withstand market fluctuations and believe in the company's growth.
ConclusionCloudflare combines strong revenue growth, innovative strength and a leading market position. The share offers both opportunities for significant price gains and the certainty that the business model can be further scaled in the coming years. Anyone with patience and who takes into account the trend towards digitalization, cloud security and automated services could actually be onto a real tenbagger here.
ℹ️ Information without guarantee | Source: ChatGPT
No investment advice - only information and own opinion. Please check for yourself before making any decisions.
