Cloudflare Is Still On A 50% Growth Hot Streak -- Is It Time to Buy the Stock?
Cloudflare (NYSE: NET) just reported yet another quarter of over 50% year-over-year revenue growth -- specifically, 54% growth during the second quarter of 2022. When it went public in 2019, Cloudflare reported annual growth of 49%. It’s been increasing more than 50% every year since then and is on pace to come near that percentage increase again in 2022.
And yet Cloudflare stock is down some 70% from its all-time high reached in late 2021. Shares have experienced a painful sell-off as the bear market this year has brought down sky-high valuations on high-growth but not-yet-profitable companies. Is it time to start buying this tech stock again?
Cloudflare’s sales were $234.5 million in Q2 2022. Operating cash flow was $38.3 million last quarter, although free cash flow (which subtracts expenditures on property and equipment from operating cash flow) was negative $4.4 million. Cash and investments on balance were $1.64 billion, offset by convertible debt of $1.43 billion as of the end of June.
Source Fool.com
