Cloudflare (NYSE: NET) stock surged more than 20% following the release of its quarterly report for the fourth quarter of 2023 and the entire year. As a result, it sells at its highest price in nearly two years.

Nonetheless, that increase has also taken Cloudflare to its highest valuation since the middle of the 2022 bear market. Now, with generative AI sparking a renewed interest in the stock, its valuation has dramatically increased. Does that mean investors waited too long to buy?

For anyone who follows cloud stocks, the appeal of Cloudflare is easy to see. It operates more than 300 data centers worldwide, giving it access to over 12,000 internet networks, covering approximately one-third of the world's unique networks. This makes it a leader in edge computing, since having access to nearby data centers tends to reduce latency.

Continue reading

Source Fool.com