Should you buy Cloudflare stock? (May 2024)

Published first at https://www.3minutebreakdowns.com Cloudflare stock analysis. Ticker: $NET Cloudflare stock plunged 16% on Friday after reporting Q1 earnings. But this wasn’t a bad report. Revenue was up 30% year over year and the company saw a record number of new customers join the platform. So is now a good time to buy the dip? At the latest price, Cloudflare has a market cap of 25 billion dollars with 1.7 billion of cash and investments on its balance sheet and 1.3 billion of debt. Revenue at Cloudflare continues to grow at an impressive rate and now stands at 1.39 billion over the last 12 months. But despite being one of the fastest growing stocks on the market the company is yet to produce a profit. Net income over the last 12 months is negative 181 million and operating income is also negative. Stock based compensation is significant at almost 300 million but free cash flow has at least turned positive. Cloudflare is a cyber security and content delivery network that helps underpin millions of websites. It’s thought that 20% of web traffic flows through Cloudflare and this is clearly a powerful business, generating annualized revenue growth of 45% over the last 5 years. The company continues to acquire large customers and gross margins remain steady at around 77%. Expansion into apps and the sheer size of the cloud market means that Cloudflare likely has a lot more growth in the tank. Management thinks Cloudflare’s addressable market is 164 billion and growing. #stocks #investing #stockmarket #3mb