Have you heard about the Cloudflare stock?
Since its IPO in the NYSE (NET) opened at $15 back in 2019, Cloudflare had its fair share of highs and lows. At the start of 2022, Cloudflare’s stock price hovered around $126. With a recent dip in its stock price, you may wonder if it’s the best time to buy.
Let’s take a closer look at Cloudflare and what it can offer. Read on and find out whether it is worth investing in.
Cloudflare: An Overview
What is Cloudflare? It is an American tech company specializing in web infrastructure. It also offers web security and provides DDoS mitigation and content delivery network (CDN) services.
Through its CDN services, Cloudflare helps companies improve their videos, images, and other forms of content. Its DNS service directs website addresses to the proper IP addresses. For its cyber security services, they block DDoS and bot attacks.
Cloudflare now serves data in over 100 countries. It also processes around 28 million HTTP requests per second. Since its humble beginnings in 2009, Cloudflare now caters to almost a fifth of all websites.
Experts attest Cloudflare’s success to two things. First, its CDN services let websites load media-heavy content faster.
Second, it updates cybersecurity software for customers. Cloudflare filters malicious attacks.
Today, Cloudflare may have enough to take on some industry giants. Read more about Cloudflare as it goes head-to-head against Microsoft and Amazon.
Reasons to Buy Cloudflare Stock
There are three reasons to consider investing in Cloudflare. Despite the recent Cloudflare stock price dip, Cloudflare offers many competitive advantages to consumers.
It operates data centers across 250 cities worldwide. In turn, it can serve clients almost everywhere. Despite its cutting-edge services, Cloudflare offers simple and affordable plans. These plans appeal to small to medium-sized businesses.
Another reason is Cloudflare’s substantial revenue growth. During the first nine months of 2021, the company posted a 52% year-over-year revenue growth. Analysts also predict a 37% revenue increase for 2022. Though it’s a growth slowdown, the Cloudflare stock forecast for 2025 remains stable.
Lastly, the company will support metaverse networks and applications. Cloudflare will also enjoy Metaverse’s 43% annual growth rate through 2028.
Never Buy if You Want a Short-Term Profit
Should you buy Cloudflare stock today? With the Cloudflare stock forecast, don’t buy for short-term capital gains. Its stock price dip entering 2022 is a sign investors are not buying for growth.
Instead, they’re looking for earnings. They can get more money by selling sooner rather than later.
Cloudflare is also facing other problems affecting its profitability. Some quarters accuse the company of catering to players from the dark web.
It doesn’t mean buying Cloudflare shares is a foolish move. If you plan to buy, don’t invest all your money.
Increase Your Financial Knowledge Now
By investing in Cloudflare stock, you can enjoy long-term capital gains. It’s a good option if you wish to diversify your investments.
Don’t limit yourself with Cloudflare stock news. Increase your financial knowledge by reading our other articles today.