Cloudflare Inc (NYSE:NET) shares are trading higher by more than 8% Tuesday afternoon. Scotiabank analyst Patrick Colville earlier upgraded the stock from Sector Perform to Sector Outperform and raised the price target from $225 to $300.
- Cloudflare stock is showing exceptional strength. What’s fueling NET momentum?
Critical Price Levels To Watch For NET
Cloudflare is extended above its major trend gauges, trading 13.8% above the 20-day SMA ($235.06), 17.6% above the 50-day SMA ($227.51) and 28.2% above the 200-day SMA ($208.62). That spacing typically signals strong trend control by buyers, but it also raises the bar for follow-through because pullbacks can snap back toward those averages.
The 20-day SMA remains above the 50-day SMA (bullish), and the Golden Cross in May (50-day SMA above the 200-day SMA) keeps the longer-term trend bias pointed up. From a turning-point perspective, the stock’s recent swing high in June and swing low in May frame the current push as another attempt to reclaim the upper end of that range.
Momentum-wise, MACD is above its signal line and the histogram is positive, which leans toward improving upside pressure versus the prior downswing. In plain terms, when MACD is above its signal line, it suggests buyers are gaining control relative to the recent baseline.
- Key Resistance: $277 — Nearby round-number/pivot area that lines up with the 52-week high zone ($276.82), where breakouts often need multiple attempts
What Is Cloudflare and How Does It Operate?
Cloudflare is a software company based in San Francisco, California, that produces security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. In practice, that puts the company in the flow of internet traffic, helping customers protect applications and keep sites fast and reliable.
The firm’s edge computing platform, Workers, builds on this infrastructure by enabling clients to deploy and run code without the need to manage or maintain servers. That matters because it ties Cloudflare to two long-running themes — security spend and moving compute closer to users — both of which can support premium valuations when execution is strong.
NET Earnings Preview and Analyst Ratings
Management is expected to discuss its long-term strategy during the next scheduled earnings call on July 30 (estimated).
- EPS Estimate: 21 cents (Flat from 21 cents year-over-year)
- Revenue Estimate: $666.17 million (Up from $512.32 million YoY)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $246.19 (high: $300; low: $140) across 31 analysts. Recent analyst moves include:
- Scotiabank: Upgraded to Sector Outperform (Raises target to $300 on July 7)
- Citizens: Market Outperform (Maintains target to $270 on June 15)
- Truist Securities: Buy (Raises target to $250 on June 11)
Growth of $1,000 Invested in NET Over 5 Years
A $1,000 investment in Cloudflare, par value $0.001 per share, on July 7, 2021, would have grown to $2,433 by July 7, 2026 — a 143.3% return over the five-year period. The stake swung between $344 and more than $2,000 along the way.
The ride included a deep trough on Nov. 9, 2022, before the position later pushed to a period high on June 2, 2026. From peak to trough, the maximum drawdown during the holding period was -82.6%.
By July 7, 2026, the investment finished the period at $2,433.
On an annualized basis, Cloudflare, par value $0.001 per share, returned 19.5% over the period, ahead of the S&P 500’s 11.5% annualized return and the Nasdaq 100’s 14.3%. Among peers, Fastly was the closest comparison in the dataset, with an annualized return of -20.1%.
Today, Cloudflare, par value $0.001 per share, has a market capitalization of about $94.97 billion.
Current Price Action for Cloudflare Stock
NET Stock Price Activity: Cloudflare shares were up 8.60% at $268.83 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
