2. Cloudflare, Inc. (NYSE: NET)
Value: $9,667,000
Percent of Paul Tudor Jones’ 13F Portfolio: 0.273%
No. of Hedge Fund Holders: 60
Cloudflare, Inc. (NYSE: NET) is a U.S-based web infrastructure and website security company that specializes in DDoS mitigation, content delivery network services, distributed domain name server services, and Internet security. It is one of the best software stocks to buy as per recommendations from many investors and hedge funds.
In 2016, the technology company announced the launch of Cloudflare Workers, which allowed users to write their codes in their preferred language. The company has signed a partnership with NVIDIA Corporation (NASDAQ: NVDA) to see Cloudflare Workers boost its scalability and access deep and secure learning methods.
For machine learning, the Workers platform will be integrated with Nvidia GPUs and the TensorFlow open source library and tools that customers will use to launch AI applications using custom or pre-made models for reference.
In its most recent review, Truist upgraded the Cloudflare, Inc. (NYSE: NET) from Hold to Buy and lifted its price target to $110 from $75. According to analyst Joel Fishbein, Cloudflare has been launching new innovative solutions that have attracted many new users and increased sales opportunities.
Thanks to the Workers products, Cloudflare is “seeing strong attach rates,” the note said. The increase in attach rates is also attributed to a significant increase in the number of users in the company’s core solution.
Cloudflare, Inc. (NYSE: NET) launched its corporate network alternative called Magic WAN, which is more secure, flexible, faster, and cost-friendly. Magic WAN has an in-built Magic Firewall making it an SaaS solution that allows users to securely connect services, data, and cloud networks to Cloudflare’s global network without hardware boxes.
In its Q4 2020 investor letter, Alger Mid Cap Focus Fund highlighted a few stocks and Cloudflare Inc. (NYSE:NET) is one of them. Here is what Alger Mid Cap Focus Fund 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.”
