Is Cloudflare Overvalued?
Key takeaways
- NET CRWD FTNT NVDA Cloudflare (NYSE: NET) hasn t fared as well as other cybersecurity stocks this year.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
- Cloudflare s first-quarter results once again showed a net operating loss, which is one of the major headwinds holding the stock back from a higher valuation.
NET CRWD FTNT NVDA Cloudflare (NYSE: NET) hasn t fared as well as other cybersecurity stocks this year. It s only up 13.8% year to date, while competitors like Crowd Strike (NASDAQ: CRWD) and Fortinet (NASDAQ: FTNT) are up by 49% and 87% year to date, respectively. This gap may exist for a reason, and there is good cause to believe that Cloudflare is overvalued, even at current levels.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Cloudflare s first-quarter results once again showed a net operating loss, which is one of the major headwinds holding the stock back from a higher valuation. Solid growth rates matter, but when a company has been around for more than 15 years, profitability matters a lot more.