Do You Need to Buy Cloudflare Under $60?
Investor euphoria pushed many growth and technology stocks to stretched valuations in 2020 and early 2021. Cloud services company Cloudflare (NYSE: NET) was among them, trading at more than 100 times sales, making it one of the most expensive stocks on Wall Street at one point. Naturally, investors have sold highfliers like Cloudflare during the current bear market, and shares of the company are down more than 70% from their highs of $221. Investors may hesitate to buy a stock in free fall, but here's why Cloudflare could reward long-term investors, even if the share price keeps falling in the short term.
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Investors have seen Cloudflare's trailing-12-month revenue nearly triple to approximately $730 million since the summer of 2019. Most companies see their growth slow down as they get bigger, because large numbers often have a harder time increasing than small ones. But in Cloudflare's case, quarterly revenue growth has accelerated from the high 40s to the low 50s on a percentage basis, as shown below.
Source Fool.com
