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NETCloudflare, Inc.Sell5.0·$228.60+0.51%
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Cloudflare, Inc. (NET) Stock Analysis

Range Bound setup

SellVALUE-TRAP 3/5High Confidence

Technology · Software - Infrastructure

Sell if holding. Analyst target reached at $228.60 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.3): -1.5.

Cloudflare is a cloud-based connectivity and security platform serving businesses globally across 330+ cities in 125+ countries, offering network security, SASE, developer tools, and AI infrastructure. It earns subscription revenue from ~332,000 paying customers including 4,298... Read more

$228.60+18.7% A.UpsideScore 5.0/10#60 of 77 Software - Infrastructure
QualityF-score6 / 9FCF yield0.93%
Stop $212.49Target $271.27(resistance)A.R:R -0.1:1
Analyst target$243.11+6.3%31 analysts
$271.27our TP
$228.60price
$243.11mean
$136
$305

Sell if holding. Analyst target reached at $228.60 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.3): -1.5. Chart setup: RSI 54 mid-range, Bollinger mid-band. Score 5.0/10, high confidence.

Passes 6/9 gates (clean insider activity, news boost analyst 0.80, news boost analyst cluster(7), earnings proximity 47d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and 8k serious 2.05. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-14
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 30, 202647d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Strong growth profile
Recent Analyst detected in news
Risks
Analyst target reached - limited upside remaining
Leverage penalty (D/E 2.3): -1.5
Expensive valuation

Key Metrics

P/E (TTM)
P/E (Fwd)145.4
Mkt Cap$81.1B
EV/EBITDA-2208.2
Profit Mgn-3.7%
ROE-5.9%
Rev Growth33.5%
Beta1.67
DividendNone
Rating analysts40

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C1.00neutral
IV70%elevated

Material Events(8-K, last 90d)

  • 2026-05-07Item 2.05MEDIUM
    Cloudflare announced plan to reduce workforce by approximately 20% as part of evolution to agentic AI-first operating model. Pre-tax charges estimated between [truncated] for the period.
    SEC filing →
  • 2026-02-10Item 5.02LOW
    Doug Kramer, Chief Legal Officer, resigned effective March 31, 2026 after nearly ten years. Successor named: Alissa Starzak (current Deputy CLO and Global Head of Public Policy) to become CLO upon Kramer's departure.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Value Rank
0.3
Quality Rank
1.0
Growth Rank
8.6
Industry growth leader

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Volume
0.4
Obv
1.0
Rsi
5.5
Ma Position
6.0
Volume distribution (falling OBV)Above 200-day MA

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ps
0.0
Forward Pe
1.0
Analyst Target
4.0
Peg Ratio
10.0
Forward P/E: 145.4xPEG: 0.20Expensive valuation
GatesMomentum 2.6<4.5A.R:R -0.1=NEGATIVE8K SERIOUS 2.05Insider activity: OKNEWS BOOST ANALYST 0.80NEWS BOOST ANALYST CLUSTER(7)EARNINGS PROXIMITY 47d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
54 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $192.80Resistance $276.81

Price Targets

$212
$271
A.Upside+18.7%
A.R:R-0.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-2.1% upside)
! momentum at 2.6 (below the engine's 4.5 threshold)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-30 (47d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is NET stock a buy right now?

Sell if holding. Analyst target reached at $228.60 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.3): -1.5. Chart setup: RSI 54 mid-range, Bollinger mid-band. Prior stop was $212.49. Score 5.0/10, high confidence.

What is the NET stock price target?

Take-profit target: $271.27 (+18.7% upside). Prior stop was $212.49. Stop-loss: $212.49.

What are the risks of investing in NET?

Analyst target reached - limited upside remaining; Leverage penalty (D/E 2.3): -1.5; Expensive valuation.

Is NET overvalued or undervalued?

Cloudflare, Inc. trades at a P/E of N/A (forward 145.4). TrendMatrix value score: 3.0/10. Verdict: Sell.

What do analysts say about NET?

40 analysts cover NET with a consensus score of 3.9/5. Average price target: $243.

What does Cloudflare, Inc. do?Cloudflare is a cloud-based connectivity and security platform serving businesses globally across 330+ cities in 125+...

Cloudflare is a cloud-based connectivity and security platform serving businesses globally across 330+ cities in 125+ countries, offering network security, SASE, developer tools, and AI infrastructure. It earns subscription revenue from ~332,000 paying customers including 4,298 large enterprise accounts, generating $2.17B in fiscal 2025 revenue. Its serverless network architecture grows more efficient at scale, attracting ISP partnerships that reduce bandwidth costs.

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