Cloudflare and Zscaler Surge Over 300% as Leading Cloud Infrastructure Stocks
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Cloudflare and Zscaler stocks have surged over 300% in the past 4 years due to strong tailwinds like security, networking, and developer tools.
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Cloudflare operates one of the fastest networks globally, powering 20% of the internet, giving it data to improve security and performance. It sees AI as a growth driver in developer tools.
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Zscaler's security platform handles network security in the cloud instead of on-premise appliances, enabling secure access from anywhere. Its scale provides superior threat detection.
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Both companies have posted impressive growth recently in customers, average spend per customer, and profits. Strong secular tailwinds provide room for durable, long-term growth.
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At current valuations, both stocks seem attractively priced for patient investors comfortable with some volatility, as they capitalize on massive market opportunities.