Should I Buy Cloudflare (NET)? Finance YouTuber Analysis

The YouTuber recommends Cloudflare as a solution to the AI cost crisis, positioning it as an 'AI gateway' that intelligently routes AI requests to optimize cost and performance. He highlights its global network and its evolution from cybersecurity to an 'air traffic controller' for AI, suggesting significant upside potential.

“Cloudflare ticker NE which has quietly evolved from a cyber security company into an air traffic controller. Cloudflare's gateway sits between the applications and language models deciding where every request should go.”

The YouTuber is buying Cloudflare, noting its usage-based model as a defense against AI disruption in software. Its content delivery network and security infrastructure, covering over 20% of the internet, provide a significant advantage in edge computing, suggesting undiscovered upside levers.

“Not only does its content delivery network and the security put it in front of more than 20% plus of the the entire internet on the planet, it's now got a giant infrastructure advantage in edge edge computing because it's got those servers positioned around the globe.”

Cloudflare is recommended as a stock that benefits from increased data usage, similar to Data Dog. The company aims to build the 'next version of the internet' to support the modern AI world, as the current internet infrastructure struggles with AI agents. Cloudflare's business model, based on usage rather than per-seat charges, makes it more resilient to AI disruption.

“Cloudflare thinks that they can build the next version of the internet that will be able to support the modern AI, sorry, the modern AI world that we're living in.”

The analyst recommends Cloudflare due to its strong revenue growth (26% annually) and global network blocking billions of threats daily. Despite high valuation and current unprofitability on a GAAP basis, its serverless architecture and shared intelligence model drive cost efficiency. The analyst has a price target of $173 based on 2026 revenue forecasts.

“My $173 price target for the shares is based on a forecast of $2.6 billion in 2026 revenue on a 22 times price to sales average over the last year for about a 17% upside.”

The analyst suggests Cloudflare as a candidate to consider, particularly among companies with strong double-digit sales growth that only need to improve their profitability slightly to meet the 'Rule of 40'.

“stocks like Cloud flare Splunk and PCH would be good candidates in this group”

The YouTuber is interested in Cloudflare due to its unique advantages in security, networking, and application services across a cloud platform, differentiating it from legacy competitors. Cloudflare handles over 10% of global internet traffic, offering speed and efficiency advantages. The company plans to grow its addressable market by 17% through 2024, maintaining a 51% annual growth rate. Analysts project a 28% upside to $91, and the YouTuber believes it will return to its previous high.

“the company offers security networking and application services across a cloud platform which really makes it unique in being able to do all three and kind of a next generation to some of those legacy companies like cisco juniper networks and checkpoint software”

The YouTuber identifies Cloudflare as the top tech stock to buy, citing its unique advantage in offering security, networking, and application services across a cloud platform, making it a next-generation leader over legacy companies. He emphasizes its significant global internet traffic, strategic expansion into new markets, and consistent high annual growth rate, despite a recent stock price drop.

“the top tech stock to buy right now shares of cloudflare ticker net for its unique advantage and growth over its peers”

The YouTuber has held Cloudflare for a long time, having made bullish analyses since 2024, and would either buy more or hold if the stock went down, indicating a strong long-term conviction based on fundamental analysis. He recently took profits due to seasonal weakness but would have been comfortable holding through a dip.

“Für mich persönlich wäre es also absolut kein Drama gewesen, wenn die Position vielleicht ins Minus gedreht wäre, dann hätte ich persönlich entweder nachgekauft oder das ganze ausgesessen, ne?”

The YouTuber believes Cloudflare is well-positioned to benefit from the AI trend over the next 10 years due to its role in internet security, acting as a global shield against attacks and ensuring fast, secure data traffic. He notes its stock has performed well since his initial bullish analyses.

“Ich persönlich glaube aber in den nächsten 10 Jahren werden diese drei Unternehmen noch mal deutlich in den Aktienkursen steigen, da sie halt eben genau perfekt in diesem KI Trend sich positioniert haben.”

The YouTuber is very bullish on Cloudflare, highlighting its strong fundamental growth, increasing customer base, and strategic advantages like its cloud-based model over hardware competitors. He notes the company's strong market dominance and global diversification. While acknowledging high volatility and dilution from convertible notes, he sees any significant dip, especially to $50, as a strong buying opportunity due to the company's long-term growth potential and management's smart financial strategies.

“Bei diesen 50 US-Dollar werde ich meinen letzten Esel aus dem Keller verkaufen und hier in Cloudfware reinbuttern, weil what the also das wäre für diese Art Unternehmen schon einmalig, ne?”

The YouTuber mentions having bought Cloudflare previously, and it has since risen significantly, with some followers having realized profits. He states he is still holding his position, implying a continued positive outlook for the stock.

“Und so habe ich zum Beispiel auch Cloudflare gekauft, einige hatten es nachgemacht und jetzt ist es auch deutlich gestiegen und einige haben schon die Gewinne realisiert, ich bin noch drin, mal gucken was daraus wird.”

The YouTuber re-entered Cloudflare after selling it previously, believing that agentic AI is increasing internet traffic and Cloudflare could become a gatekeeper for this technology, adding significant optionality.

“Cloudflare is one that as I said I sold out of but I reentered it as I started learning more and more about claude coowwork and how agentic AI was increasing traffic on the internet and I believe that's adding a lot of optionality and that cloudflare could be the gatekeeper of this technology.”

The YouTuber rates Cloudflare highly for its anti-fragility, citing its moat from low-cost production across a vast global network and massive switching costs for its users. Its optionality is demonstrated by accelerating dollar-based net retention and growth in areas like Cloudflare Workers for edge computing, zero-trust environments, AI inference, and sovereign AI contracts.

“Let's now go to number three which is cloudflare which got its start as a content delivery network to the edge for internet companies.”

The YouTuber believes Cloudflare is a high-quality opportunity that can buck the trend of legacy software companies. It meets four criteria: a largely usage-based pricing model, hardware-integrated software, significant penalties for service mistakes (making customers stick), and legitimate network effects that improve the product with more users and scale.

“And one company that I do believe fits all four of these is Cloudflare, which started out as a content delivery network specialist, but has become many other things.”

This creator bought back into Cloudflare due to its strong revenue growth (34% in Q4 2025, accelerating from 27%), increasing number of paying customers, and significant growth in remaining performance obligations (48%). He believes the company is well-positioned for the AI agent era due to its anti-fragile, usage-based model, real-world feedback requirements, and proprietary context. Despite a high valuation (24x forward P/S, 86x forward operating cash flow), a reverse discounted cash flow analysis suggests the current price is justified if revenue grows at 30-33% for the next decade, which he believes is achievable given its widening moat and network effects.

“The real reason that I bought into it was because between when I sold and when I bought back in, Claude came out with their co-work uh tool chat GPT with, excuse me, with their frontier model. And when I saw that, I saw, boy, there is going to be a lot of demand for what Cloudflare has. I think this shifts the narrative, at least my understanding of it quite a bit.”

The YouTuber considers Cloudflare 'anti-fragile,' believing AI will make content delivery even more critical, benefiting the company. However, he notes that the market already recognizes this, making the stock quite expensive in his opinion.

“The only problem is the market leader the the the market understands that and it is still in my opinion a quite expensive stock.”

The YouTuber sold all his Cloudflare shares because he believes its valuation got ahead of itself. His reverse DCF analysis, assuming a 25% free cash flow margin, indicated the stock price implied a 33-34% annual growth rate over 10 years. This is significantly higher than the 27% growth rate analysts expect over the next few years, making the stock overvalued in his view.

“We're saying that Cloudflare had to grow at 33 basically 33 to 34% per year for 10 years with 25% free cash flow margins to justify that stock price.”

The analyst views CloudFlare as an interesting company with a market-leading position in its niche (CDN and security), but considers the stock currently overvalued despite a recent pullback. Based on a discounted cash flow analysis using a more realistic KCV, the current price offers a negative annual return expectation. A buy limit order at $60 or below would make the investment more attractive.

“Die Aktie erscheint mir immer noch etwas teuer zu sein.”

The YouTuber recommends Cloudflare as a phenomenal growth company providing critical internet infrastructure, protecting against DDoS attacks and serving 20% of all internet traffic. He acknowledges current net losses but believes its rapid growth trajectory offers significant opportunities to improve margins and achieve free cash flow in the future.

“I think a ton of momentum behind the business continues to be a phenomenal growth stock they need to work on the bottom line we saw in that chart earlier that they are losing money that cannot persist forever but a company growing this quickly I think has a lot of opportunities to improve those margins and turn around to free cash flow in the future”

Cloudflare provides performance and security solutions for services like ChatGPT, indicating that its growth is tied to the expansion of AI. As an edge compute provider, increased AI usage will drive demand for Cloudflare's services, making it a beneficiary of the AI trend.

“as chat gbt grows so will cloudflare services for them this is really a edge compute provider with a number of different services for the technology industry.”