Cloudflare’s Growth Metrics Impress Investors

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Cloudflare, Inc. ($NYSE:NET) is a company that is obviously in a growth-at-all-cost stage, given its continuous cash burn thus far. With high operating expenses and stock-based compensations, it is evident that NET has yet to achieve net income and FCF profitability, potentially leading to further reliance on Convertible Note Offerings moving forward, as it has historically done. However, it is also evident that NET has had many successes in its expansion, given the accelerating YoY growth of 54% in its revenues and 29.2% in customers in Q1 2022. It is unclear how this will affect CLOUDFLARE market and earnings in the long term, but it is safe to say that the company’s impressive growth metrics will be a positive factor.

Market Reaction

Cloudflare’s stock opened at $55.2 on Friday and closed at $51.6, impressing investors with its growth metrics. Cloudflare’s products protect and accelerate websites, mobile applications, and APIs.

VI Analysis – Cloudflare Intrinsic Value

Company’s fundamentals reflect its long term potential, below analysis on CLOUDFLARE are made simple by VI app. Cloudflare intrinsic Value is around $90.7, calculated by VI Line. Now CLOUDFLARE stock is traded at $71.6, undervalued by 21%.

Summary

While the stock price drop may have been due to concerns about future growth potential, given the company’s impressive track record, investors remain confident in Cloudflare’s ability to continue delivering strong results.