Why Cloudflare (NET) Went Up On Friday?

We recently published a list of 10 Firms Post Double-Digit Gains on Friday. In this article, we are going to take a look at where Cloudflare, Inc. (NYSE:NET) stands against other firms that posted double-digit gains on Friday.

The stock market fell into the red territory on Friday, with all major indices recording losses over renewed fears of growing trade tensions coupled with expectations of a higher inflation rate in the US.

The Dow Jones lost 0.99 percent, the S&P 500 declined 0.95 percent, while the tech-heavy Nasdaq dived by 1.36 percent.

Despite the overall pessimistic sentiment, 10 companies managed to defy losses, posting double-digit gains in their valuations amid a flurry of impressive earnings performance.

To come up with Friday’s top winners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a server array powering a cloud-services system.

Cloudflare, Inc. (NYSE:NET)

Shares of Cloudflare, Inc. (NYSE:NET) surged 18.01 percent on Friday to finish at $166.66 apiece as investors resorted to buying following improved earnings performance during the past quarter.

In its earnings release, Cloudflare (NYSE:NET) said it narrowed its net loss by 54 percent in the fourth quarter of the year to $12.8 million from $27.87 million registered in the same period last year.

Net loss in full year 2024 also shrunk by 57 percent to $78.8 million from the $183.9 million registered in 2023.

Revenues for the quarter rose by 26.9 percent to $459.9 million from $362.47 million year-on-year, while revenues for the full year jumped by 28.8 percent to $1.669 billion from $1.296 billion.

For this year, Cloudflare (NYSE:NET) expects its revenues to jump by between $2.09 billion and $2.094 billion, representing at least 25 percent growth.

Overall, NET ranks 6th on our list of firms that posted double-digit gains on Friday. While we acknowledge the potential of NET as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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