Analysts Seen Good Growth Prospect: Cloudflare Inc. (NET)

Cloudflare Inc. (NYSE: NET), a supplier of cloud solutions, has lost nearly 40% of its value in the previous month. Inflationary expectations were one factor in the drop.

Needham analysts reduced Cloudflare’s target price from $245 to $100 on Monday, May 16, but kept their Buy rating. On the same day, prices fell about 14%.

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Wall Street investors are still concerned that increasing inflation and the Federal Reserve’s efforts to combat it would stifle economic development. Growing enterprises like Cloudflare will suffer as a result of the economic slump in this circumstance. As investors seek safer investments, stock prices are falling in practically every industry.

Cloudflare provides IT solutions that, among other things, speed up your internet application without the need for additional hardware, software, or code changes. Last year, Cloudflare launched a new remote work solution called Cloudflare for Teams, which quickly gained traction due to its advantageous timing. Additionally, the firm offers digital security and data protection services.

Cloudflare also unveiled many new solutions this month to help its platform compete more effectively. Cloudflare is significantly different from the AWS and Azure cloud platforms, but with each new product introduced to the platform, Cloudflare is becoming the greatest alternative for developers who don’t want to maintain the infrastructure. 

With the recently announced D1 and Pub/Sub technologies, the firm will be able to compete with AWS as a cloud behemoth. Inflation may thus have a negative impact on the company’s quotations in the short run. However, the cloud provider’s potential audience will grow dramatically in the long run.

NET stock has a 5-day range of $51.50 to $67.60, with a total return of +4.00 percent over that time period. Meanwhile, this stock has moved in a range of $51.00 to $113.55 during the last month, resulting in a -48.01 percent drop in value. This stock’s price has moved by -42.91 percent in the last three months, moving in the range of $51.00 to $132.45.

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