15 Software Infrastructure Stocks Outperforming In 2025

4. Cloudflare, Inc. (NYSE:NET)

Cloudflare, Inc. is a cloud services company that provides a variety of services to businesses. It offers an integrated cloud-based security solution and website & application security products. The stock is up 54% this year and it has a lot to do with the company’s recent quarterly performance.

NET is a high-quality company and while such companies tend to give better returns, they are almost never available at a cheap valuation. The company registered another quarter with sequential growth but the bigger question for investors is how long can the company maintain a 30%+ growth rate.

Many analysts are bullish on the company’s stock. JMP Securities upped its price target from $135 to $180 while Morgan Stanley boosted its target from $140 to $154. Needham’s $185 price target confirms the broader trend of bullishness but investors may need to keep one thing in mind. As strong as the company is, it has a rather fragile balance sheet. This means that if something goes wrong, it will have less room to maneuver. But for now, everyone is attaching a premium to the company’s valuation despite these risks.