Cloudflare Aims to Leverage AI Momentum Despite Lofty Valuation
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Cloudflare's global data center network makes it well-positioned for AI workloads needing low latency and security.
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Cloudflare offers a variety of services beyond CDNs, including cybersecurity and infrastructure for generative AI models.
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Revenue grew 32% last year to over $182,000 customers, with over 2,500 paying $100k+ annually.
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The stock trades at a very high valuation of 21x revenue and potentially over 60x forward earnings.
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Despite strong growth prospects, the stock price already factors in high expectations that may be difficult to achieve.