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    Cloudflare (NET) Adds AI Crawling Controls, Is The Upside Already Priced In?

    Simply Wall St·09/21/2026 12:21:01
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    Cloudflare’s AI crawling controls and why investors care

    Cloudflare (NET) just rolled out its Accountable designation for AI crawlers and a Disallow AI Training setting, letting website owners restrict AI training access while keeping traditional search indexing intact.

    This update arrives as investors weigh Cloudflare’s recent share price performance against its valuation, given the stock’s higher P/S ratio compared with peers and the business focus on AI related tools that could influence future demand.

    Recent trading in Cloudflare reflects a mixed picture, with the share price easing 3.1% over the last day and 2.1% over the past week, after a strong 43.9% 90-day share price return and a 3-year total shareholder return of more than 4.5x.

    Momentum in the share price accelerated earlier this year following a Q2 beat and reaccelerating growth, alongside news of a US$2.175b convertible debt raise and insider share sales. The new AI crawling controls now feed into the existing debate about how much future demand is already reflected in today’s US$323.60 price and elevated P/S ratio.

    Compare how Cloudflare’s AI push stacks up against other potential breakouts by scanning our hand-picked 88 AI infrastructure stocks in the same theme.

    Cloudflare has already run hard, with a 90 day return of 43.9% and the stock near US$323.60. Is that a reasonable entry now or does patience on price make more sense?

    Most Popular Narrative: 93% Overvalued

    Cloudflare last closed at $323.60, while the most followed valuation story on Simply Wall St pegs fair value at about $167.45 using its own set of assumptions and required return.

    My fair value estimate for Cloudflare is about $200/share.

    I use roughly $2.81B in 2026 revenue, about 30% annual revenue growth over the next five years, a 25% future net margin, a 45x future earnings multiple, a 10% required return, and roughly 375M diluted shares.

    See why 21 investors see Cloudflare as 93% overvalued.

    According to DaneDruss, the narrative argues that Cloudflare could benefit from rising concern around post quantum security and Q-Day risk, yet that potential is already heavily reflected in the share price at current levels.

    The same storyline points out that Cloudflare’s security upgrades are intended to be included by default rather than carved out as a premium paid add on, which may help deepen customer trust but may not create a large separate revenue stream on its own.

    That framing matters for anyone weighing Cloudflare’s AI crawling controls and broader security portfolio against a $115.2b market cap, ongoing losses of $206.3m, and a value_score of 0 on Simply Wall St’s checklist.

    Result: Fair Value of $167.45 (OVERVALUED)

    Still, Cloudflare’s story could shift quickly if AI related demand for its developer tools or post quantum security offerings grows faster than today’s cautious fair value assumptions.

    Find out about the key risks to this Cloudflare narrative.

    Next Steps

    If the Cloudflare debate seems evenly balanced between risk and optimism, avoid remaining undecided. Review the data yourself and then consult the 1 key reward and 1 important warning sign.

    Looking for more Cloudflare investment ideas beyond this story?

    If Cloudflare feels fully priced to you right now, do not stop here. Let the data guide you toward fresh opportunities before other investors move first.

    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.