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    Is Cloudflare’s AI‑Focused Expansion And Estimate Beats Altering The Investment Case For Cloudflare (NET)?

    Simply Wall St·01/07/2026 21:35:57
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    • In recent days, Cloudflare has drawn heightened investor attention as it continues to outpace revenue and earnings forecasts while broadening its AI-optimized infrastructure and security offerings.
    • This mix of consistent estimate beats and rapid platform expansion, even as analysts reassess their views, is sharpening market focus on how Cloudflare balances innovation with execution risk.
    • Now, we’ll examine how Cloudflare’s push into AI-optimized infrastructure and enhanced security could influence its existing investment narrative.

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    Cloudflare Investment Narrative Recap

    To own Cloudflare, you need to believe its role in powering and securing much of the internet can support continued platform adoption, despite ongoing losses and rich valuation multiples. The recent combination of estimate beats, elevated volatility and a modest price target cut mainly reinforces that the key near term catalyst remains execution on AI and security growth, while the biggest current risk is whether the company can justify its premium pricing in a competitive, fast evolving market.

    Among recent announcements, Cloudflare’s expansion of AI optimized infrastructure and security, with an emphasis on platform consolidation, is most relevant here because it directly links to the growth catalyst that many investors are watching most closely. This push into AI workloads and broader security is what underpins the bullish narrative around future revenue opportunities, but it also concentrates attention on execution risk and the need to turn innovation into durable, profitable customer relationships.

    Yet behind this growth story, investors still need to be aware of how intense competition and pricing pressure could...

    Read the full narrative on Cloudflare (it's free!)

    Cloudflare's narrative projects $3.8 billion revenue and $176.4 million earnings by 2028. This requires 26.5% yearly revenue growth and about a $293.5 million earnings improvement from -$117.1 million today.

    Uncover how Cloudflare's forecasts yield a $242.46 fair value, a 22% upside to its current price.

    Exploring Other Perspectives

    NET Earnings & Revenue Growth as at Jan 2026
    NET Earnings & Revenue Growth as at Jan 2026

    Twenty eight members of the Simply Wall St Community value Cloudflare anywhere between US$11.58 and US$242.46, showing very wide dispersion in expectations. When you set those views against Cloudflare’s premium sales multiples and dependence on continued AI and security adoption, it underlines how important it is to compare several perspectives before deciding what the stock’s future could look like.

    Explore 28 other fair value estimates on Cloudflare - why the stock might be worth as much as 22% more than the current price!

    Build Your Own Cloudflare Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.