Added to YB: 2026-10-15
Pitch date: 2026-10-13
NET [neutral]
Cloudflare, Inc.
-7.13%
current return
Author Info
Equity research team focused on tech stocks (with special interest in cybersecurity and cloud). Sign up for their newsletter.
Company Info
Cloudflare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide.
Market Cap
$124.9B
Pitch Price
$340.59
Price Target
N/A
Dividend
N/A
EV/EBITDA
1.7K
P/E
-598.51
EV/Sales
49.48
Sector
IT Services
Category
value
Which software companies do real work on AI models? Cloudflare, Inc.
NET (pass): Cloudflare has defensible network, security and developer infrastructure that should carry, secure and bill more agent traffic, but its AI products serve third-party models rather than train proprietary ones, while power-density constraints limit frontier-scale hosting. At ~50x trailing EV/sales versus a stated fair range of ~10-16x, the shares price Cloudflare like the default AI-agent host — an outcome its current model work does not support.
Read full article (2 min)