Cloudflare (NYSE: NET) had a terrible run on the stock market in 2022 amid the broader sell-off as investors were shunning high-growth companies amid rising interest rates and surging inflation, but the picture has changed in recent months thanks to favorable economic data points and the arrival of a new catalyst for the company in the form of generative artificial intelligence (AI).

Shares of Cloudflare, a company that helps secure internet connections and makes them reliable through its cloud-based security and performance solutions, shot up 33% so far this year. More importantly, this hot rally seems here to stay, as Cloudflare's latest quarterly results suggest that it is scratching the surface of a potentially huge opportunity.

Cloudflare released fourth-quarter 2022 results on Feb. 9, revealing an impressive revenue jump of 42% over the prior-year period to $275 million. Its adjusted net income jumped to $0.06 per share from breakeven in the year-ago quarter. The company ended 2022 with total revenue of $975 million, a big jump of 49% over 2021. Its non-GAAP net income of $0.13 per share was also a big improvement over 2021 levels of $0.05 per share.

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Source Fool.com