Cloudflare has experienced a 13% price increase over the last quarter, driven by its recent product announcements, including the Cloudflare for AI suite and the Cloudforce One Threat Events Platform, which have bolstered its security offerings amid rising cyber threats. Additionally, the introduction of support for post-quantum cryptography highlights the company's focus on future-proofing its services. While a broader market retraction led by significant declines in major tech stocks like Tesla and Nvidia has exerted pressure, Cloudflare's advancements in AI tools and security seem to have provided some separation from the overall market trends.

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Over the past five years, Cloudflare has achieved a substantial total shareholder return of 443.02%. This growth reflects the company's focus on innovation and expansion, as evidenced by key moments in its development. A significant factor has been Cloudflare's commitment to cybersecurity, essential amid increasing global cyber threats. The launch of its Cloudforce One Threat Events Platform and the expansion of post-quantum cryptography in March 2025 have played vital roles. These initiatives aim to provide robust defense capabilities for businesses.

Cloudflare has also made concerted efforts to expand its global presence, with strategic regional investments such as its new technical hub in Lisbon and office in Dubai. Partnerships, including the one formed with Kyndryl in March 2024, have further strengthened its multi-cloud security offerings. Furthermore, the company's revenue growth has been robust, with expectations of reaching US$2.09 billion for 2025, reflecting its continued advancement and adaptation to market needs.

Insights from our recent valuation report point to the potential overvaluation of Cloudflare shares in the market.

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.

Companies discussed in this article include NYSE:NET.

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