Latest news with #Ruleof
Yahoo
20-05-2025
- Business
- Yahoo
Cloudflare, Inc. (NET): A Bull Case Theory
We came across a bullish thesis on Cloudflare, Inc. (NET) on Substack by Northwest Frontier Capital. In this article, we will summarize the bulls' thesis on NET. Cloudflare, Inc. (NET)'s share was trading at $154.49 as of May 14th. NET's forward P/E was 185.19 according to Yahoo Finance. Copyright: hywards / 123RF Stock Photo Cloudflare's Q1 earnings signal a pivotal transformation from a disruptive startup into a vital enterprise platform, driven by strong revenue growth and deepening enterprise adoption. Reporting $475 million in revenue, up 27% year-over-year and beating expectations, the company demonstrated significant traction among large customers, with revenue from clients spending over $100,000 annually rising 32% and now comprising 69% of total revenue. This shift reflects consistent success in securing substantial contracts, highlighting growing trust in Cloudflare's platform across major organizations. With dollar-based net retention steady at 111% and improved customer churn, Cloudflare is evolving from a discretionary expense to an essential service, reinforcing durable growth in a tough macro environment. The company's software-defined, globally distributed network drives sales efficiency gains, creating a competitive moat grounded in superior performance and security. A defining highlight was a landmark five-year, $130 million contract expansion with an existing customer, underscoring Cloudflare's ability to upsell and displace entrenched hyperscalers by offering enhanced network speed, cost benefits, and a modern platform. The Workers edge computing platform is a key growth engine, surpassing revenue expectations and positioning Cloudflare to disrupt the $56 billion cloud development market. Coupled with the longest-ever Zero Trust security contract, these wins demonstrate broad-based growth across application services, security, and developer tools, fueling a flywheel effect of deeper adoption and accelerated revenue. With improved sales execution, faster cycles, and a growing pipeline under new CRO leadership, Cloudflare is well-positioned to exceed its conservative 25% revenue growth guidance for 2025. Strong contracted revenue growth and a robust 'Rule of 40' profile point to sustainable profitability, making Cloudflare an attractive opportunity as it scales into a dominant enterprise platform despite a 22x EV/sales valuation. Cloudflare, Inc. (NET) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held NET at the end of the fourth quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of NET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
News18
04-05-2025
- Business
- News18
Is The 4% Rule Enough For Your Retirement? Expert Shares A Caveat
Last Updated: Expert advises against blindly using the 4% rule for retirement planning. He emphasizes considering retirement age and inflation. Planning for retirement can be daunting, but the 4% rule offers a straightforward approach to determine if you're financially ready to retire. This rule suggests that if 4% of your wealth covers your annual expenses, you can retire immediately. In other words, having 25 times your annual expenses means you can retire comfortably. However, it shouldn't be considered as a straightforward, with many ifs and buts exist to counter the theory. There are important factors to consider, such as your retirement age and inflation. Anmol Gupta, Founder of 7Prosper – Your Personal Financial Planner, recently shared an insightful post on LinkedIn about retirement planning. He advises against using the 4% rule blindly. Understanding The 4% Rule The 4% rule suggests that if 4% of your wealth covers your expenses, you can retire immediately. To put it differently, having 25 times your annual expenses means you can retire. However, there are two crucial factors to consider, Gupta states: Retirement Age Matters This rule is best applied if you plan to retire around age 55-60, as it assumes a retirement period of approximately 30 years. If you aim to retire much earlier, you'll need a larger corpus since you'll be living longer without income. – Current age: 30 – Target retirement age: 55 – Inflation rate: 6% Using the Rule of 72, your expenses will double every 12 years. By age 55, your lifestyle will cost around Rs 24 lakh/year instead of Rs 6 lakh. Applying the 4% rule, you'll need: Rs 24 lakh × 25 = Rs 6 crore Thus, you'll require Rs 6 crore at age 55 to retire comfortably. Why Rely On Thumb Rules? In today's era of AI, it's better to use accurate calculators to estimate your retirement corpus rather than relying solely on thumb rules, says Anmol Gupta. First Published: May 04, 2025, 17:10 IST
Express Tribune
20-04-2025
- Politics
- Express Tribune
'No Kings': Americans protest nationwide against Trump, Musk on revolution anniversary
People take part in the nationwide anti-Trump protests in Boston, Massachusetts, US. PHOTO: REUTERS Listen to article Thousands of demonstrators took to the streets across the United States on Saturday in coordinated protests against the Trump administration and its policies, coinciding with the 250th anniversary of the American Revolution. In cities from Miami to San Francisco, crowds waved signs reading 'No Kings,' 'Rule of Law is America,' and 'Free Kilmar,' referencing Kilmar Ábrego García — a Salvadoran father mistakenly deported and reportedly held in a high-security prison. Marches, rallies, food drives, and voter registration efforts were organized to oppose what participants described as authoritarian governance and democratic backsliding under President Donald Trump's second term. Branded '50501' — symbolizing 50 protests in 50 states for one movement — the National Day of Action spanned over 900 events. Despite court orders, the Trump administration has yet to facilitate his return. Protesters also condemned the growing influence of Elon Musk, who as Trump's senior adviser, is overseeing sweeping cuts to federal programs and real estate. Demonstrations outside Tesla dealerships accused the billionaire of helping dismantle public services. 'There's never been anything like this in my life,' said San Francisco protester Teri Lenfest, 79. 'I've watched my country unravel.' Other demonstrators highlighted the arrests of international students, calling for an end to aggressive immigration enforcement. Signs named detained individuals such as Mahmoud Khalil and Mohsen Mahdawi, drawing attention to what organizers called 'a silent purge of dissent.' While mostly peaceful, some tensions flared between demonstrators and Trump supporters. Still, the movement drew praise for its scale and message. Saturday's protests follow the April 5 'Hands Off!' marches, continuing a wave of resistance to the administration's agenda.
Yahoo
09-02-2025
- Business
- Yahoo
Meet the 1 Number From Palantir That May Keep This Supercharged Stock Soaring
Palantir Technologies (NASDAQ: PLTR) recently announced mind-blowing earnings results, from double-digit revenue growth across businesses to record deal values as well as numbers of deals. The software company has built its business over more than 20 years, but in recent times, Palantir's strength in applying artificial intelligence (AI) to real-world problems has helped demand explode higher. Both government and commercial customers have flocked to Palantir's Artificial Intelligence Platform (AIP), a system that puts AI to work on the customer's data to aggregate and make the best use of it. The results can be game changing, leading to better decisions, new strategies, and completely different ways of organizing how business is done. In the fourth-quarter report, good news seemed to flow from every angle -- but one number in particular, a number that's often overlooked, really gives us reason to cheer. That's because this particular number shows the company is hitting it out of the park when it comes to balancing growth and profitability. And that bodes well for long-term earnings and share price performance. Let's meet this one number from Palantir that could keep this supercharged stock soaring. So, first a little background on Palantir and its path so far. Palantir, as mentioned, offers a software platform that helps customers harness the power of their own data and apply it to improve operations. The company was originally most associated with government contracts, but as demand for AI picked up, more and more commercial customers started to check out Palantir's AIP. The result has been tremendous growth. Just four years ago, Palantir had 14 U.S. commercial customers. Today, that number has reached 382. On top of that, in the recent quarter, Palantir closed a record $803 million of U.S. commercial total contract value -- that represents a 134% increase year over year. How are commercial customers using Palantir's AIP? A great example is Rio Tinto. The mining and metals giant recently extended its work with Palantir for another four years because AIP is offering the company a chance to access its unstructured data and tackle problems that before seemed out of reach. All this has helped Palantir increase revenue and profit, even reaching its highest quarterly profit ever in the third quarter of the year. But it's one particular number, in the fourth-quarter earnings report, that stands out and could keep the good times rolling for Palantir. I'm talking about Palantir's "Rule of 40" score. The Rule of 40 is a financial metric applied to software-as-a-service (SaaS) companies to evaluate how well they're balancing growth with profitability. This number should be 40% or higher in order to be considered a solid SaaS company. So the idea is if a company is at or above this level, it's not only growing, but it's turning that growth into profit too -- so you've got the best of both worlds. In the recent quarter, Palantir's Rule of 40 score reached an eye-popping 81%. During the earnings call, chief executive officer Alex Karp said he considered that one of the company's greatest numbers of the period. To put the accomplishment into perspective, we can take a look at 2021 research from McKinsey & Co. that found that hardly one-third of software companies reach the Rule of 40, and fewer are able to maintain it. In fact, the research showed companies only surpassed the rule 16% of the time. So, it's clear that Palantir, which has greatly exceeded the rule every quarter last year, and in particularly in the recent quarter, truly stands out from the crowd. Now let's get back to my point about stock performance. The shares already climbed 340% last year, but there's still plenty of room to run, considering how Palantir is managing growth and profit. Palantir's ability to top the Rule of 40 shows this company is expertly balancing the two. And the fact that it's topping the Rule of 40 by so much suggests this is sustainable, too, as it's well beyond that minimum level -- this offers some wiggle room during quarters that may be more difficult. So, Palantir's Rule of 40 accomplishment is something investors shouldn't ignore. This one particular number highlights the company's ability to keep delivering solid earnings -- and that could keep this top stock roaring higher. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $333,669!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $44,168!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $547,748!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of February 3, 2025 Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Meet the 1 Number From Palantir That May Keep This Supercharged Stock Soaring was originally published by The Motley Fool
