Cloudflare's (NYSE: NET) big downgrade on 2023 growth expectations is now long forgotten, replaced with excitement about the company's "act three" driven by... artificial intelligence (AI). Shares have rallied some 50% this year.  

Of course, there are lots of reasons to be bullish on the business as it continues to win over lots of new customers. However, the stock price still fetches a very high premium. Is it too late to buy? 

Cloudflare had a solid performance in the second quarter of 2023, with revenue of $308.5 million and adjusted net income of $20.3 million topping its own guidance provided three months ago. CEO Matthew Prince and the top team even slightly boosted full-year 2023 financial guidance as a result.  

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Source Fool.com