Cloudflare Stock Rockets Higher on AI "News." But Is It Really a Buy Now?
Cloudflare (NYSE: NET) stock took a hit following its Q1 2023 earnings report, largely on news that the content delivery network and cybersecurity service lowered guidance for the rest of the year due to economic headwinds. Sure, annual revenue growth of 31% to 32% isn't bad at all, but this is a premium-priced stock. The market was anticipating expansion much closer to 40% or higher for the year.
But in 2023, there seems to be a quick fix for companies experiencing a flagging share price: Just mention AI. After a handful of announcements about its work in AI, Cloudflare stock quickly reclaimed much of the ground it lost post-Q1 earnings.
The lessons something like this teaches abound for investors.
Source Fool.com
