Cloudflare (NET) Stock Rallies on Strong Earnings-Is the Price Too High?

TLDR

• Cloudflare stock jumped about 18% in after-hours trading after stronger-than-expected quarterly results.
• Revenue rose 36% year over year to $696 million, beating Wall Street estimates of about $665 million.
• Adjusted earnings reached $0.29 per share, also coming in above analyst expectations.
• Cloudflare raised its full-year revenue outlook to about $2.87 billion and increased its profit forecast.
• Growth in cybersecurity demand and AI infrastructure spending continued to support customer expansion.

Cloudflare (NYSE: NET) shares jumped about 18% in after-hours trading after the internet infrastructure company reported stronger-than-expected quarterly results and raised its full-year outlook. Cloudflare stock gained as investors reacted to higher revenue, better adjusted earnings, and continued demand from cybersecurity and artificial intelligence customers.

Cloudflare Stock Rises After Earnings Beat

Cloudflare reported quarterly revenue of $696 million, up 36% from a year earlier. The result topped Wall Street expectations of about $665 million and showed continued growth across the company’s core internet and security services.

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