Cloudflare Stock Up 50% in 2023: Time to Buy?
The world's demand for content delivery networks (CDNs) continues to grow rapidly. The growth of e-commerce, streaming services, and just about all the most visited websites, including Meta Platform's Facebook and Netflix, use a CDN to improve internet speed and security, and Cloudflare (NYSE: NET) is one of the largest CDN providers in the market.
Cloudflare recently reported earnings results that beat analysts' estimates. Revenue grew 42% year over year in the fourth quarter. The company is obviously delivering enough growth to warrant interest by long-term investors, but the stock's 50% jump year to date has made the stock very expensive from a valuation perspective.
Let's look at the company's performance and what management had to say about near-term demand trends to help determine if the stock is worth paying up for.
Source Fool.com
