Cloudflare Stock (NET) Jumps after Q1 Results Impresses Analysts
Cloudflare (NET) shares jumped in today's trading after its strong first-quarter earnings and guidance impressed analysts. Indeed, BofA Securities kept its Buy rating and $160 price target, noting that Cloudflare brought in $479 million in revenue, which was $10 million more than expected and 300 basis points above consensus. Analysts led by Madeline Brooks pointed to strong demand for Cloudflare's SASE (Secure Access Service Edge) and Workers products, which shows that the company has a solid position in cybersecurity and AI support.
Protect Your Portfolio Against Market Uncertainty
Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
While Cloudflare's operating margin came in slightly below expectations at 11%, analysts said that the company increased its go-to-market spending to 38% of revenue (up from 36% last quarter) to build on its momentum. As a result, Brooks' team believes that Cloudflare still has room to beat full-year guidance, especially as the AI market moves from training models to large-scale deployment, which is Cloudflare's strength. Although the stock is expensive compared to other high-growth software firms, Cloudflare stands out by guiding for faster growth and improving performance.
Separately, five-star Jefferies analyst Brent Thill kept a Hold rating and cut his price target to $150 from $170. The analyst noted that Cloudflare beat the midpoint of its revenue guidance by 2.3% (its best performance in five quarters) and is being cautious with full-year guidance despite no major macro risks. In addition, a $130 million, five-year deal was seen as validation of Cloudflare's value in an AI-driven market. Meanwhile, Morgan Stanley raised its price target to $150 and said that a nine-figure and seven-year customer deal shows strong confidence in Cloudflare's long-term innovation. Interestingly, it called Cloudflare a 'Best Athlete' that is well-positioned to do well even in an uncertain economy.
Is NET Stock a Good Buy?
average NET price target of $152.55 per share implies 15.1% upside potential.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
2 hours ago
- Forbes
Employees Or Independent Contractors? How To Classify Workers
A business' tax and benefit obligations are limited when a worker is a contractor. But misclassification can be costly. getty When you're a small business, you may not have the resources (nor the need) for a full-time staff. You might choose to have one or two employees who work part-time, one or two who work full-time, or, depending on your circumstances, you might fill in the gaps seasonally by hiring temporary employees. From a tax and employment law perspective, all of them could potentially be your employees. Sometimes employers assume that only full-time, permanent workers are employees. This is not true. Employees can be full-time or part-time, seasonal or year-round, temporary or permanent. The question of how to classify workers as employees versus independent contractors depends on many factors, but the length of employment is not one of them. What distinguishes an employee from an independent contractor? If a worker is an employee, the employer has certain tax obligations on behalf of the worker. In contrast, an employer does not withhold any payroll taxes, including Social Security and Medicare taxes, nor does it pay the employer portion of those taxes for an independent contractor. The Internal Revenue Service (IRS) says that the general rule is that an individual is considered an independent contractor if the person paying for the work has the right to control or direct only the result of the work, not the manner in which it is done. Or, to put it simply, it's a question of control: The more you control the terms of the employment, the more likely it is that you are an employer. Obviously, control is relevant and cases are fact-specific. In an effort to clarify this, in 1987, the IRS developed a list of 20 factors to be considered. Those were memorialized in Revenue Ruling 87-41. (A revenue ruling is an official interpretation by the IRS of the Internal Revenue Code, related statutes, tax treaties, and regulations, and indicates how the IRS believes the law should be applied to a specific set of facts.) The 20 factors identified by the IRS in Revenue Ruling 87-41 are listed below. The more the answer to each question is yes, the more likely it is that the worker is an employee and not an independent contractor. Of course, that list isn't written in stone, just in a Revenue Ruling. Some of this is subjective, and there's no magic number of times you can answer yes that conclusively determines the outcome. Since that time, the IRS has updated its checklist to three categories of factors to be used alongside the 20 questions. For IRS purposes, as an employer, you must weigh all these factors to determine whether a worker is an employee or an independent contractor. The IRS also has a helpful section on its website that provides examples and definitions. So is this just about a paycheck? Not at all. Employers have different obligations towards employees than they do towards independent contractors—and that extends beyond tax obligations. For example, an employer is not responsible for providing the same benefits and tax-favored opportunities, such as health care insurance and retirement plans, to an independent contractor that they provide to those workers who are considered employees. An employer is not required to offer stock options or other incentive plans to an independent contractor. And when an independent contractor leaves, for whatever reason, there is generally no severance or unemployment compensation payable. In short, an independent contractor is, well, independent. Worker classification can also impact wages and overtime pay. That's why, as part of its efforts to address worker misclassification, the Wage and Hour Division of the Department of Labor (DOL) published a final rule, effective March 11, 2024, revising its guidance on how to analyze whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). Additional information is available on the DOL website. Worker misclassification issues aren't limited to small businesses. Several high-profile companies, including Microsoft, Time Warner, and Lyft, have faced court cases over allegations of worker misclassification. Perhaps the most famous case involved FedEx, which was accused of classifying and paying its drivers as independent contractors for years (when they should have been classified as employees). After extensive litigation in multiple states, FedEx paid nearly half a billion dollars in settlement payments for misclassification. What happens if you do it wrong? As court cases around the country have demonstrated, if you erroneously classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. Depending on circumstances, you may be required to retroactively apply benefits. If you have concerns, you can get out in front of the problem. If you want the IRS to make a determination, you can file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. (The form may be filed by either the business or the worker.) The IRS will review the facts and circumstances and officially determine the worker's status. But it's not quick: it can take at least six months to get a determination. If you've misclassified a worker as an independent contractor, but you have a reasonable basis for doing so, you may qualify under a safe harbor for tax relief. The relief, sometimes referred to as section 530 relief, requires you to meet certain criteria, including treating the worker consistently for filing obligations (for example, you filed Form 1099-NEC for a worker you considered an independent contractor). You must also have treated similar workers as independent contractors. The IRS also offers a Voluntary Classification Settlement Program (VCSP) that allows employers to reclassify workers as employees for future tax periods and obtain some tax relief. To participate, a business owner must meet certain eligibility requirements (similar to those for section 530 relief).
Yahoo
2 hours ago
- Yahoo
Global Market Value Stocks Trading At Estimated Discounts
In recent weeks, global markets have experienced a mix of optimism and caution as trade policies and inflation trends continue to influence investor sentiment. While U.S. stocks saw gains amid trade negotiations, European markets are adjusting to potential rate cuts due to slowing inflation, and Asian equities reflect ongoing trade discussions with the U.S. In such a fluctuating environment, identifying undervalued stocks can be an appealing strategy for investors looking to capitalize on market inefficiencies. These stocks may offer potential value when trading at estimated discounts relative to their intrinsic worth, providing opportunities amidst broader economic uncertainties. Name Current Price Fair Value (Est) Discount (Est) USU Software (HMSE:OSP2) €25.79 €51.17 49.6% Sahara International Petrochemical (SASE:2310) SAR18.98 SAR37.74 49.7% MicroPort CardioFlow Medtech (SEHK:2160) HK$0.88 HK$1.75 49.7% Kanto Denka Kogyo (TSE:4047) ¥840.00 ¥1679.07 50% Heartland Group Holdings (NZSE:HGH) NZ$0.78 NZ$1.55 49.8% Good Will Instrument (TWSE:2423) NT$44.05 NT$87.37 49.6% Fuji (TSE:6134) ¥2240.50 ¥4455.77 49.7% DigiTouch (BIT:DGT) €1.83 €3.64 49.7% 3U Holding (XTRA:UUU) €1.495 €2.99 50% 123fahrschule (DB:123F) €4.24 €8.46 49.9% Click here to see the full list of 509 stocks from our Undervalued Global Stocks Based On Cash Flows screener. Let's take a closer look at a couple of our picks from the screened companies. Overview: China National Software & Service Company Limited operates as a software company in China with a market capitalization of CN¥37.91 billion. Operations: The company generates revenue primarily from its Software Service Business, amounting to CN¥5.14 billion. Estimated Discount To Fair Value: 19.6% China National Software & Service is trading at CN¥44.97, below its estimated fair value of CN¥55.95, suggesting it is undervalued by 19.6%. Despite a recent decline in quarterly revenue to CN¥640.5 million from the previous year's CN¥702.71 million, the company shows promising growth potential with earnings expected to grow significantly annually and become profitable within three years, outperforming average market growth rates despite a forecasted low return on equity of 9.4%. Our expertly prepared growth report on China National Software & Service implies its future financial outlook may be stronger than recent results. Delve into the full analysis health report here for a deeper understanding of China National Software & Service. Overview: Chung-Hsin Electric and Machinery Manufacturing Corp. operates in the electric and machinery manufacturing sector with a market cap of NT$76.33 billion. Operations: The company's revenue is derived from three main segments: Motor Energy Business contributing NT$19.28 billion, Service Business generating NT$5.17 billion, and Engineering and Other providing NT$3.21 billion. Estimated Discount To Fair Value: 21.7% Chung-Hsin Electric and Machinery Manufacturing is trading at NT$159, below its estimated fair value of NT$203.12, indicating it is undervalued by over 20%. Despite a slight decline in quarterly net income to TWD 878.6 million from TWD 953.24 million the previous year, the company demonstrates strong growth prospects with earnings forecasted to grow significantly annually, surpassing Taiwan's market average while maintaining reliable dividend payments. The growth report we've compiled suggests that Chung-Hsin Electric and Machinery Manufacturing's future prospects could be on the up. Take a closer look at Chung-Hsin Electric and Machinery Manufacturing's balance sheet health here in our report. Overview: Rheinmetall AG is a global provider of mobility and security technologies, with a market cap of €85.66 billion. Operations: The company's revenue segments include Power Systems (€2.00 billion), Vehicle Systems (€4.25 billion), Electronic Solutions (€1.87 billion), and Weapon and Ammunition (€3.02 billion). Estimated Discount To Fair Value: 38% Rheinmetall is trading at €1,882, significantly below its estimated fair value of €3,035.4. Recent strategic partnerships and strong financial performance highlight growth potential. First-quarter sales surged to €2.31 billion from €1.58 billion a year ago, with net income rising to €84 million from €48 million. The company's earnings are forecasted to grow annually by 34%, outpacing the German market average of 16.4%, underscoring its undervaluation based on cash flows. Insights from our recent growth report point to a promising forecast for Rheinmetall's business outlook. Click here to discover the nuances of Rheinmetall with our detailed financial health report. Click this link to deep-dive into the 509 companies within our Undervalued Global Stocks Based On Cash Flows screener. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SHSE:600536 TWSE:1513 and XTRA:RHM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Yahoo
Secure Access Service Edge (SASE) Market Outlook 2025-2030: Compliance with GDPR, HIPAA, and Other Regulations Drives Adoption with Industry Registering 23.6% CAGR
Secure Access Service Edge (SASE) Market Dublin, June 06, 2025 (GLOBE NEWSWIRE) -- The "Secure Access Service Edge (SASE) Market by Offering (SD-WAN, SSE), SD-WAN Offering (Software, Appliances), SSE Offering (Zero Trust Network Access, Cloud Access Security Broker, Secure Web Gateway, Firewall as a Service) - Global Forecast to 2030" report has been added to SASE market is estimated to be USD 15.52 billion in 2025 and reach USD 44.68 billion in 2030 at a CAGR of 23.6%, from 2025 to 2030. Regulatory mandates such as GDPR, HIPAA, and others mandate are pushing organizations have in place measures for data access, usage, and protection. This involves having sensitive data available only to authenticated users, logging all access activity, and having detailed audit logs. SASE facilitates these compliance initiatives by offering a centralized platform that enforces uniform security policies on all users, locations, and devices. With built-in logging, data loss prevention (DLP), and identity-based access controls, SASE allows organizations to prove compliance, minimize the risk of a violation, and quickly respond to audits or an incident involving sensitive data. Zero Trust Network Access SSE Solutions to contribute the largest share of the SASE market during the forecast periodZTNA is a security architecture that enforces strong identity authentication and access controls before allowing users access to applications or data, whether they are remote or on-premises. In contrast to legacy VPNs, ZTNA adheres to the never trust, always verify principle, dynamically verifying user identity, device posture, and context with each access request. It employs safe, encrypted tunnels to connect users solely to the precise resources to which they have permission to connect, without exposing the wider network. ZTNA solutions are generally combined with identity providers, endpoint detection software, and policy engines to continually evaluate risk and enforce detailed, least-privilege access. This reduces the attack surface, stops lateral movement, and enhances visibility across user activity, and thus forms a central element of contemporary, cloud-native security designs. SD-WAN Appliances projected to register the highest CAGR during the forecast periodSD-WAN appliances are physical or virtual devices that are installed at network edge locations like branch offices or data centers to direct and control traffic over various kinds of connections like MPLS, broadband, and LTE. These appliances facilitate smart path selection, application-aware routing, and centralized policy enforcement to enable businesses to optimize performance, minimize latency, and enhance reliability for mission-critical applications. They tend to include security functionalities like firewalls, encryption, and intrusion prevention, and enable secure and effective connectivity. SD-WAN appliances are also easier to deploy and scale, making them perfect for organizations with distributed operations. With features such as real-time analytics, automated failover, and cloud integration, the appliances provide efficient performance and seamless user experiences across the America projected to have the largest market share during the forecast periodThe SASE market in North America is growing rapidly, fueled by the increasing demand for cloud-based security technologies and the shift toward remote work. Organizations are increasingly embracing SASE to better secure their networks, streamline network management, and provide remote workers and distributed teams with seamless, secure access. Key market players include Cisco Systems, Palo Alto Networks, Zscaler, Fortinet, and Akamai Technologies, which are driving the market with advanced solutions that combine network security and connectivity. The region is witnessing increased investment in cybersecurity infrastructure, with companies prioritizing solutions that offer scalability, flexibility, and strong protection across their transition is pushing businesses to transform their security practices, integrating SASE to accelerate digital transformation and meet the evolving needs of a hybrid workforce. As the market expands, companies also focus on improving their understanding of network traffic and enhancing threat detection to respond effectively to real-time security incidents. The growing sophistication of cyberattacks is further driving the demand for unified, cloud-native security platforms like SASE. Research CoverageThe market study covers the SASE market size across different segments. It aims to estimate the market size and the growth potential across different segments, including offering (infrastructure, services), business model, and regions. The study includes an in-depth competitive analysis of the leading market players, their company profiles, key observations related to product and business offerings, recent developments, and market strategies. The major players in the SASE market are Cisco Systems (US), HPE (US), Verizon (US), Broadcom (US), Fortinet (US), Akamai (US), Oracle (US), Juniper Networks (US), Extreme Networks (US), AT&T (US), Palo Alto (US), Checkpoint Software Technologies (Israel), and Huawei (China). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches, product enhancements, and acquisitions to expand their footprint in the SASE Attributes Report Attribute Details No. of Pages 369 Forecast Period 2025-2030 Estimated Market Value (USD) in 2025 $15.52 Billion Forecasted Market Value (USD) by 2030 $44.68 Billion Compound Annual Growth Rate 23.6% Regions Covered Global Key Topics Covered Market Dynamics Drivers Rising Adoption of Remote Work and Hybrid Workforce Models Zero Trust Security Implementation Growing SD-WAN Adoption Restraints High Implementation Costs Complexity in Migrating from Legacy Infrastructure to SASE Opportunities Growing Digital Transformation Initiatives Across Industries Expansion of Edge Computing and 5G Networks Challenges Managing Multi-Cloud and Hybrid Environments Ensuring Data Sovereignty and Compliance Ecosystem Analysis Case Study Analysis Lemonade Insurance Innovates Secure Work Access with Prisma Access Browser European Software Company Cuts Cybersecurity Costs by 50% with Fortinet's FortiSASE for Hybrid Workforce Security SASE Provides Manufacturing Company with Foundation for Secure Future Strengthening Solar Energy Networks with Versa Unified SASE Through SB Energy's Security Journey Value Chain Analysis Tariff and Regulatory Landscape Pricing Analysis Average Selling Prices Offered by Key Players, by SSE Offering, 2024 Indicative Pricing Offered Key Players, by SASE Offering, 2024 Technology Analysis Key Technologies Virtualization Cloud Computing Complementary Technologies Data Analytics Virtual Private Networks Adjacent Technologies Artificial Intelligence & Machine Learning 5G and Next-Generation Networks IoT Edge Computing Patent Analysis Porter's Five Forces Analysis Trends/Disruptions Impacting Customer Business Key Stakeholders and Buying Criteria Key Conferences and Events, 2025-2026 Technology Roadmap for SASE Market Best Practices to Implement in SASE Current and Emerging Business Models Tools, Frameworks, and Techniques Trade Analysis Impact of AI/Gen AI on SASE Market Investment and Funding Scenario Impact of 2025 US Tariffs: SASE Market Introduction Key Tariff Rates Price Impact Analysis Key Impact on Various Regions North America Europe Asia-Pacific End-Use Industry Impact Manufacturing Financial Services Healthcare Retail and E-Commerce Education Companies Profiled in this SASE Market Report Cisco Systems Broadcom Palo Alto Networks Akamai Fortinet Hewlett Packard Enterprise (HPE) Huawei AT&T Verizon Juniper Networks Oracle Nokia Extreme Networks, Inc. Check Point Software Technologies Orange Business Comcast Corporation Ericsson BT Group Barracuda Networks Sophos Riverbed Technology Zain Group Lumen Technologies KT Corporation Colt Technology Services NEC Corporation Tata Communications Forcepoint Kyndryl GTT Communications NTT Communications STC Deutsche Telekom Telefonica Telstra Vodafone Group HCL Tech Microland Wipro Singtel Zscaler Netskope Cloudflare McAfee Tibco Software Proofpoint Sonicwall Versa Networks Aryaka Networks Cato Networks Flexiwan Nour Global Fatpipe Networks Lavelle Networks Peplink MCM Telecom Ransnet Open Systems Exium Twingate Claro Enterprise Solutions Nordlayer For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Secure Access Service Edge (SASE) Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
