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Cloudflare Stock Is Finally Down After A Massive Run-up; Here's Why You Should Grab The Opportunity

Impressive Growth Momentum Coupled With Operating Leverage

Author

George Babis
March 12, 2025

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Software giant Cloudflare ($NET) was one of the best-performing software names before the recent selloff. Its shares soared in February after the company released a solid earnings report and issued strong guidance for 2025. However, as you can see below, $NET has given up nearly all gains for the year and is now up a modest 8%.

The company lost a third of its value in less than a month, a massive capital destruction in a short period of time, but this selloff has probably created a buying opportunity. Cloudflare is firing on all cylinders, seeing an acceleration in several key financial and operational metrics. While the stock is still expensive, this dip has made $NET attractive again. Here’s why.

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