Here’s What Makes Cloudflare (NET) A Great Investment Choice

Alger, an investment management firm, published its “Alger Mid Cap Focus Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the largest portfolio sector weightings were Information Technology and Industrials. The largest sector overweight was Industrials. The portfolio had no exposure to the Utilities or Materials sectors and negligible exposure to the Real Estate sectors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Alger Mid Cap Focus Fund, in its Q4 2021 investor letter, mentioned Cloudflare, Inc. (NYSE: NET) and discussed its stance on the firm. Cloudflare, Inc. is a San Francisco, California-based web infrastructure and website security company with a $28.4 billion market capitalization. NET delivered a -32.66% return since the beginning of the year, while its 12-month returns are up by 6.97%. The stock closed at $88.55 per share on January 21, 2022.

Here is what Alger Mid Cap Focus Fund has to say about Cloudflare, Inc. in its Q4 2021 investor letter:

“Cloudflare has an ambitious mission of helping to build a better internet by providing a broad range of network services to businesses of all sizes to help make their networks more secure, more reliable and less costly. The Cloudflare platform has been built from the ground up ona single software stack with a “serverless” network architecture, which has positioned the company to quickly expand its product offerings and network using commodity network hardware. By doing so, the company provides its customers with a flexible, scalable and affordable network platform.

The stock outperformed after the company reported a robust third quarter that exceeded expectations across key metrics. Cloudflare also raised its fiscal year 2021 guidance by 3%. The outperformance was driven by strong customer growth, particularly from large customers, as well as the adoption of new products by existing customers. The company added 170 large customers compared to 143 during the second quarter. Cloudflare also stated that the fourth quarter was off to a strong start including a new $1 million annual contract with a large social networking company and an $8 million deal with a large video conferencing service.”

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Our calculations show that Cloudflare, Inc. (NYSE: NET) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NET was in 50 hedge fund portfolios at the end of the third quarter of 2021, compared to 43 funds in the previous quarter. Cloudflare, Inc. (NYSE: NET) delivered a -53.25% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.