We came across a bullish thesis on Cloudflare, Inc. (NET) on Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on NET. Cloudflare, Inc. (NET)'s share was trading at $106.81 as of April 22^nd. NET’s forward P/E was 128.21 according to Yahoo Finance.

A computer engineer developing a secure cloud infrastructure solution.

Cloudflare (NET) is a high-quality compounder benefiting from immense network effects, already managing 20% of global web traffic. With estimated revenue and EBITDA growth both exceeding 20% over the next two years, NET is in a strong position as it scales past $2 billion in annual revenues—a significant milestone for a company still growing top-line at 28%. As one of the most strategically positioned internet infrastructure providers, its platform continues to expand across security, performance, and developer services. The inflection point for profitability is approaching, with net income expected to turn positive in 2025, marking a pivotal shift in the company’s financial profile. This transition aligns with a broader market appetite for high-growth, cash-flow-generating tech businesses, positioning NET for a potential valuation rerating. As earnings visibility improves, Cloudflare stands out as a rare mix of scale, growth, and operational leverage, offering a compelling long-term opportunity for investors looking to capitalize on internet infrastructure expansion.

Cloudflare, Inc. (NET) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held NET at the end of the fourth quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of NET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.