This Tumbling Cloud Stock Is Still Way Too Expensive
Cloudflare (NYSE: NET) made a name for itself speeding up and protecting websites. The company's edge network now spans 275 cities around the world, with nearly all Internet users within 50 milliseconds of a Cloudflare server. The company slots itself in between end users and servers, caching data and absorbing malicious traffic.
What makes Cloudflare special is its immense optionality. Its vast edge network is useful for so much more than boosting website performance. The company continually launches new products and features that leverage its network, including a full-blown serverless computing platform. It's possible for a developer to deploy an application entirely on Cloudflare, eschewing the major cloud platforms completely.
Its long-term potential is enormous, and the company is growing fast. Revenue soared 51% in 2021, and over 1,400 customers are spending at least $100,000 annually on Cloudflare's platform. The company estimates that its total addressable market will reach $100 billion by 2024. With annual revenue of $656 million last year, it has barely scratched the surface.
Source Fool.com