Key Stats for Cloudflare Stock
- Price Change: +~6%
- Current Price: ~$196
- Valuation Model Target: ~$622
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What Happened?
Cloudflare (NET) shares rallied this week, fueled by a massive “sympathy surge” from its competitor.
Fastly (FSLY) stock exploded +13% after reporting earnings that confirmed a revolutionary new trend: “AI Agents” (autonomous bots) are now generating massive amounts of web traffic.
Investors immediately piled into Cloudflare, betting that as the industry leader, it is capturing even more of this bot-driven revenue.
Cloudflare’s CEO, Matthew Prince, corroborated this in his own latest earnings call, stating that the number of weekly requests generated by AI agents more than doubled in January alone.
Prince explained that while humans might look at 5 sites to make a decision, AI agents look at 5,000. This makes agents the “ultimate infrastructure multiplier” for Cloudflare’s network.
Because Cloudflare already protects 20% of the entire web, it has become the “global control plane” for the agentic Internet.
See analysts’ growth forecasts and price targets for Cloudflare stock (It’s free!) >>>
Is Cloudflare Undervalued Today?
The TIKR Model suggests that the current rally is just the beginning of a massive re-rating.
The model sees a path to $621.53, implying a staggering 217% upside from current levels.
The market is starting to price in what management calls “Act 4”, a new business model for the Internet.
As AI scraping crushes traditional network costs, Cloudflare is launching tools like AI Crawl Control to help media companies and publishers monetize their content from AI models.
This shifts Cloudflare from a simple security vendor to an essential broker of the AI economy.
Management noted they are already signing multi-million dollar deals for these AI-specific tools, including a $3.1 million contract with a major media company looking to protect its IP from bots.
Read the full Cloudflare Transcript on TIKR to see the “Act 4” Strategy >>>
Valuation Deep Dive
The TIKR Advanced Valuation Model identifies Cloudflare as a rare high-growth compounder that is still under-monetizing its massive footprint.
- Target Price (2030): ~$622
- Current Price: ~$196
- Annualized Return: 26.7%
The “Agentic” Multiplier: The model projects Revenue CAGR of 38.1% over the next five years. This is driven by the fact that AI agents never sleep and generate an order of magnitude more traffic than human users. Every time an agent queries the web, it passes through Cloudflare, creating a high-margin “tax” on the AI revolution.
Operating Leverage Unlock: While Cloudflare has historically prioritized growth, the model highlights a shift toward profitability. The company delivered $89.6 million in operating profit this quarter, with free cash flow reaching 16% of revenue. The model sees net income margins expanding significantly as the “enterprise sales engine” matures.
Conclusion: The AI infrastructure winner. With a projected 26.7% annualized return and a dominant position in the “agentic” Internet, Cloudflare offers a unique way to play AI without the extreme GPU costs of the hyperscalers. The path to $622 is paved by billions of new “digital workers” traversing Cloudflare’s network every second.
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How Much Upside Does Cloudflare Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
