Cloudflare - AI Stock Analysis

Analysis generated December 10, 2025

Cloudflare Inc. (NYSE: NET) is a leading tech company specializing in web performance and security services. They offer an integrated cloud-based solution to enhance the security and performance of business-critical websites, applications, and APIs. Cloudflare’s mission to build a better internet helps it stand out in the competitive cybersecurity landscape.

Fundamental Analysis

The revenue for Cloudflare in the last quarter was $430 million. This represents a decrease of 16.05% compared to the previous quarter, which could raise concerns about the company's short-term business dynamics. However, the quarterly revenue matched the same quarter last year, indicating a level of consistency that may temper some of the concerns about the quarter-over-quarter decline.

Net income for the last quarter was $15 million, increasing by 69.61% compared to the previous quarter. This growth in net income is a positive sign, suggesting that Cloudflare is improving its profitability dynamics. Additionally, the net income figure remains consistent compared to the same quarter last year, reflecting steadiness in the company's earnings.

EBITDA for the last quarter was $68 million, marking a staggering increase of 24,068.66% from the previous quarter and a year-over-year increase of 76.23%. These figures imply a significant improvement in the company’s operational efficiency and overall profitability over both the short and long term.

Recent insider stock sales, however, could be a bearish signal, indicating that some of those closest to the company might be less optimistic about its immediate future.

Technical Analysis

Today’s stock price is $206.59, representing a decrease of 14.11% compared to a month ago. While this short-term decline may be concerning, the stock has appreciated by 80.41% compared to a year ago, highlighting a strong long-term trend.

The current trend is bullish. The SMA10 is $203.12, up from the previous SMA10 of $202.48, pointing to a potential upward trend in price movement. The RSI is 45.4, indicating a neutral condition, and suggesting neither overbought nor oversold market conditions.

Alternative Data Analysis

Cloudflare is currently looking to expand, with 547 open positions listed on popular job boards. This represents a 13% increase in job postings over the last couple of months, indicating potential growth and expansion.

The employee sentiment at Cloudflare is neutral, which suggests neither increasing enthusiasm nor growing discontent among its workforce.

Cloudflare's website has seen an estimated 89 million visitors recently, up by 94% in the last couple of months. This sharp increase in web traffic is a bullish indicator as it can lead to higher customer acquisitions. Similarly, the company's mobile apps have an estimate of 83,000 daily downloads, up by 32% over the last couple of months, which is another positive indicator of increasing customer acquisition.

Customer engagement is also on the rise, with Instagram followers increasing by 19% to 63,000 and Twitter followers up by 12% to 260,000 in the last couple of months. These metrics indicate increased interest and engagement with the company.

Lastly, AltIndex’s AI score for Cloudflare stands at 73, which is considered a buy signal. This integrated AI score combines fundamental, technical, and alternative data analysis to provide an informed stock recommendation.

Conclusion and Recommendation

Based on the comprehensive analysis above, Cloudflare exhibits strong long-term growth potential despite some short-term concerns. The consistency in revenue and net income, coupled with a considerable improvement in EBITDA, highlights a positive trajectory in profitability. The company's bullish technical indicators further support this optimistic outlook.

The increase in job postings and the surge in website visitors and mobile app downloads indicate expansion and growing customer interest. Harmonizing these findings with the positive AI score from AltIndex, it appears that Cloudflare is positioned well for future growth.

The recommendation based on the data provided would be to consider Cloudflare as a buy. This reflects confidence in the company's resilience and potential for continued expansion in the web performance and security industry.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.