3. Cloudflare, Inc. (NYSE: NET)
Number of Hedge Fund Holders: 45
Cloudflare, Inc. (NYSE: NET) is the operator of a cloud platform delivering network services to businesses across the globe. The company offers integrated cloud-based security solutions and ranks 3rd on our list of the best security stocks to buy now.
The stock has been gaining in light of its positive Q1 earnings report. The stock was initiated with an Outperform at KGI Securities this July with a $135 price target as well.
In the first quarter of 2021, Cloudflare, Inc. (NYSE: NET) had an EPS of -$0.03, in line with estimates. The company’s revenue was $138.06 million, up 51.21% year over year and beating estimates by $7.04 million, and it has a gross profit margin of 76.5%. The stock has gained 36.02% in the past 6 months and 44.34% year to date.
As of the end of the first quarter of 2021, 45 hedge funds held stakes in Cloudflare, Inc. (NYSE: NET), worth roughly $792 million. This is compared to 60 hedge funds in the previous quarter with a total stake value of $1.18 billion.
Alger Mid Cap Focus Fund mentioned Cloudflare, Inc. (NYSE: NET) in its fourth-quarter 2020 investor letter. Here’s what they said:
“Cloudflare. Inc. provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic. Today. over 15% of global internet requests go through Cloudflare. Cloudflare’s serverless network design allows this global network to be a key component layer as new developments for edge cornputing. 5G and Internet of Things increase the importance of secure. reliable edge networks. Cloudflare stock outperformed in the fourth quarter following the announcement of Cloudflare One, a cloud-bas. network-as-a-service platform designed to replace the traditional enterprise network infrastructure. The Cloudflare One solution merges existing Cloudflare access and security solutions along with new enterprise-specific features into a unified Zero Trust network that can be managed through a single “pane of glass.” or display screen. With the rapid shift to remote work caused by the pandemic, this product increases Cloudflare’s potential for winning business from enterprise customers seeking to adapt to this new business environment.
While Cloudflare One adoption is still early. Cloudflare has already started to demonstrate an improved ability to sell to large customers. When discussing its third quarter results. Cloudflare said that it is continuing to sign up larger enterprise customers. including its first client to generate more than $10 million in annual recurring revenue. Cloudflare has just started to better monetize its more than 100.000 paying customer base. which along with continued product innovation, gives the company strong growth potential.”
