Cloudflare at 38x NTM revenue and 150x NTM EBITDA is insane, so a decent return from here is unlikely even though it is the leader. That has never happened before without massive acceleration in growth rates and margin expansion. x.com 

Cloudflare looks absurdly valued at about $120B in market cap on a $2.7B revenue run rate, roughly 45x annualized quarterly revenue, while it still loses money on a GAAP basis. x.com  x.com  x.com 

Cloudflare is just getting started while most cybersecurity names have already begun their run, having built a multi-month base as fundamentals improve. Revenue is expected to grow from $2.3B over the last twelve months to $4.6B by 2028, with EPS inflecting positive. x.com 

Cloudflare cannot justify a bullish view at a 10000x revenue valuation. x.com 

Cloudflare's roughly $100 billion valuation is hard to justify because it is unclear how shareholders make money at this price. A post the author replies to calls it an amazing company and product at nosebleed multiples; another notes it converts only about 30% of revenue into cash, and stock-based compensation makes that worse. Positive EPS alongside negative net income reflects non-GAAP versus GAAP figures. x.com  x.com  x.com  x.com 

Cloudflare's importance becomes clearest during outages, when disruption exposes how much of the internet depends on its platform. That dependence makes the stock hard to sell despite its obscene valuation. x.com 

Cloudflare's valuation leaves almost no return even under generous assumptions, so buyers at $330 risk being patsies. If it grows 15% every year through 2041, with non-GAAP margins rising to 50% and a 6% terminal value, the stock would compound at only about 0.6% a year. x.com 

Oppenheimer's $430 Cloudflare price target looks increasingly excessive against probable revenue of $3B this year and an assumed $4B next year. x.com 

Cloudflare is one of the names leading this market and likely to lead the next leg higher, as an emerging leader in data inference and a core piece of internet DNS infrastructure. That positioning helped it avoid sustained weakness like its 81% drawdown in 2022 and 50% pullback in April 2025. With the market within 3% of all-time highs, there is little reason to bottom fish in names still down 50%+, though Cloudflare remains very expensive. x.com  x.com 

Cloudflare's business outlook looks very bullish, but the stock needs to fall back below $200 before even a small position makes sense. Cloudflare sees a need for a payment processor that can handle millions or tens of millions of transactions per second to support microtransactions on the agentic web, and its recent fireside chat was very bullish. x.com  x.com