Cloudflare (NET) - Share Chat

I was expecting good earnings, but these results are incredible. Never disappointed. Up AH, may it continue lol

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With such good results why is the dropping so much?

And still falling!
Another 10% this week alone

It’s a fun ride this one…

none of these tech stocks are much fun atm;

Zscaler, Crowdstrike, Cloudflare, Okta, Fastly…all had good results so it might just be negative sentiment for these growth companies

@Boomish Perhaps the question should be why did the price rise so much from Sept 27 to Nov 15? Nearly 100%.

One reason is sentiment not fundamentals. But when sentiment can take you up it can take you down too … and perhaps faster.

Price of $145 (yesterday) cf. $130 on September 20 … 11.5% is good.

One last thing - good results in themselves are not a reason that a stock price goes up. It is all about expectations. If the market expects you do something … it will be factored into the price. Then you need to do better or worse to see a difference. Macroeconomics and share correlations will play their role too.

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Should of been a sign when nearly all the board are selling a load of shares. I sold a decent chunk @$200 but still hold my remaining and will reinvest again in the future.

Not if the board members had already announced a disposal plan and/or the holdings are minor relative to their ownership. This is a business that has proven to be good and I don’t think that

raises alarms.

IMO, many people who have started share trading in the last two or so years will be discovering soon that share prices are often related to how central banks act. In this case how quickly the Fed changes one or two things …

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Sunk today!!

Just seen this drop. Cloudflare are announcing the Q1 2022 financial results today

Here is the investor presentation for Q1 2022

https://cloudflare.net/home/default.aspx

From the webinar. Sounds like a strong Q1 2022

Hopefully this will be reflected in the share price going forward over the next few days/weeks

Good results but nothing is saving high growth stocks right now

It’s down 15% after hours.
Ouch

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@SecureHttp yep. Saw that earlier. I wonder what caused the big drop earlier today and later this evening (uk time). Was it nervousness leading up to the Q1 results?

Nice detailed breakdown from business wire of the recent results

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Looks like a great company, good set of results too

Either way, getting slapped down by the current market conditions and the stupid valuations for growth stocks

Added to my watchlist cos I can see this one recovering well in future

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The thinking around growth companies is shifting. Negative cashflow doesn’t help either, Cloudflare said “The decrease in cash flow was primarily related to a unique withholding tax payment of approximately $30 million.” They “expect to return to positive free cash flow in the second half of this year”.


There is a lot of good news in the earnings update. Even more in the earnings call. Here’s a few quotes:

Related to AWS

“A Fortune 1000 gaming company signed a $3.3 million three-year contract. I love this story. They were using AWS but found their security couldn’t prevent the attacks they were seeing. After struggling to keep their application online, AWS’s team eventually told them, “You should just use Cloudflare.” And so they did.”

“R2 is progressing to open beta next week, and we expect we’ll be able to save them lots of AWS egress fees as well.”

R2 is Cloudflare’s AWS S3 competitor. Expect to hear more about their developer platform tools next week, the CEO said he thinks they will “have some very exciting surprises as part of what we’re rolling out over the course of the week”.

On protecting against phishing attacks through Area 1 and on simplicity of deployment

“Almost every headline hacking incident that you’ve read about in the last two years, email was the initial way that that vulnerability was taken into account. So I think it makes a ton of sense for us to have a solution. It’s also incredibly powerful because we’re the DNS provider that we can make it one-click deployment, where it’s a customer of ours clicks a single button and instantly, they get the benefits of the Area 1 solution, and they can continue to use whoever their existing email provider is, whether that’s Outlook and Microsoft Office or its G-suite or if it’s something that they’re hosting on-premise.”

“We can automatically isolate that email using our browser isolation product so that any link that you click on in that link don’t actually render on your laptop, but they’re actually rendered at the edge of our network.”

On FedRAMP

“Federal is a big opportunity for us. FedRAMP we think we’ll continue to unlock that. We got word actually today that we have thumbs up from our sponsoring agency and are just waiting kind of in line with the overall federal agency to get that approved.”

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