11 AI News and Ratings You Shouldn’t Miss

3. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 44

Cloudflare, Inc. (NYSE:NET) offers cloud-based security, networking, and performance solutions for businesses across various industries worldwide.

On February 6, Cloudflare reported Q4 non-GAAP EPS of $0.19, surpassing expectations by $0.01, with revenue reaching $459.9 million, a 26.9% increase year-over-year, exceeding estimates by $7.78 million. Non-GAAP gross profit was $356.8 million with a 77.6% margin. For Q1 2025, Cloudflare projects revenue between $468.0 million and $469.0 million, below the $474.12 million consensus, and non-GAAP EPS of $0.16, missing estimates of $0.18. Full-year guidance forecasts revenue between $2.09 billion and $2.094 billion, with non-GAAP EPS of $0.79 to $0.80.

Co-Founder and Chief Executive Officer, Matthew Prince said that Cloudflare sees four main AI opportunities. First, like many companies, it is improving efficiency using AI, often using its own infrastructure. Second, AI makes its security and performance products better by detecting threats through machine learning. Third, Cloudflare Workers is emerging as a leading platform for AI applications, offering a cost-effective, serverless model for AI inference. The company’s AI Gateway also helps developers optimize costs. Finally, Cloudflare’s position between AI companies and content creators allows it to influence the evolving business model of the AI-driven web, shaping how content is managed and monetized.