Latest news with #MadelineBrooks
Business Insider
10-05-2025
- Business
- Business Insider
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.
Yahoo
09-05-2025
- Business
- Yahoo
Cloudflare Stock Skyrockets More Than 7.5% on Q1 Beat
Cloudflare (NYSE:NET) jumps after a strong Q1 beat and upbeat outlook sending shares up more than 7.5% early trading. Cloudflare reported first-quarter revenue of $479 million, surpassing its guidance by $10 million and outperforming Street expectations by 300 basis points, driven by large deals in its SASE and Workers product lines, BofA's Madeline Brooks wrote. Warning! GuruFocus has detected 2 Warning Sign with NET. The analysts maintained their Buy rating with a $160 price target, highlighting that go-to-market investments rose to 38% of revenues in Q1 (from 36% in Q4 2024) to capitalize on momentum, even as operating margin dipped slightly to 11%. Jefferies kept a Hold rating but trimmed its price target to $150 from $170, noting a 2.3% beat to guidance's midpointthe firm's largest in five quarterswhile pointing to prudent revenue guidance amid an unchanged macro backdrop. Its team led by Brent Thill emphasized that a $130 million five-year deal underlines Cloudflare's strategic importance in AI-enabled security, though they called the operating-margin result mildly disappointing relative to the revenue surprise. Morgan Stanley's Keith Weiss reiterated an Overweight rating and raised his target to $150 from $144 after Cloudflare signed both a nine-figure transaction and a seven-year agreement, calling the platform a Best Athlete ready to outpace peers under uncertainty. The convergence of strong GTM leadership and landmark contracts, Weiss argued, validates the company's innovation roadmap and positions it to capitalize on surging demand for secure, AI-powered network services. Why It Matters: Cloudflare's ability to beat consensus and secure multiyear deals suggests its model is resonating with enterprisespotentially driving further reacceleration and outperformance. Investors will look for Q2 guidance and margin targets when Cloudflare reports again in late July. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
