Cloudflare: Right Time To Dive In As Growth Accelerates, Stablecoin Opportunity (Rating Upgrade)

Gary Alexander33.48K FollowersFollow5ShareSavePlay(12min)CommentsSummaryCloudflare stands out as a Rule of 40 cybersecurity leader, accelerating revenue growth above 30% despite a $3B run rate.NET’s broad platform, $196B+ TAM, and robust enterprise customer growth (55% y/y for $1M+ accounts) support continued expansion.The company is reported to partner with Coinbase in introducing a stablecoin, NET Dollar, to enable AI agents to make payments across the web.Q4 revenue beat by 5 points, with net retention rising to 120%, demonstrating strong customer stickiness and expansion.I upgrade NET to buy, citing resilient execution, premium justified by quality, and a favorable position against AI disruption. Sundry Photography/iStock Editorial via Getty Images Investors have been dumping software stocks all year, but one subsector that has experienced tremendous pain is cybersecurity. Ever since Claude unveiled new security capabilities, investors have dumped cybersecurity stocks on fears that vibe-coded AI agentsThis article was written byGary Alexander33.48K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of NET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.