This investor loves Cloudflare stock

ValueTrend Wealth Management president and chief portfolio manager Ivana Delevska says Cloudflare (Cloudflare Stock Quote, Chart, News, Analysts, Financials NYSE:NET) is one of the more interesting AI-related cybersecurity stories.

Speaking on BNN Bloomberg’s Market Call on Sept. 16, Delevska said Cloudflare provides a secure platform that companies can use to build AI applications.

She said the company is differentiated by its ability to flexibly route resources and help customers optimize the cost of accessing different AI models.

Delevska noted that Cloudflare has historically grown revenue in the low- to mid-20% range, but growth is now accelerating toward 30%.

“When we look at a space like cybersecurity, we really like to see, okay, the theme is great and we all hear about the risks being high, but we really like to see stories where you’re also seeing that in the numbers,” she said.

The investor said Cloudflare differs from more established cybersecurity companies such as Palo Alto Networks and CrowdStrike because it is more of a secure AI platform, while those companies are more traditional enterprise cybersecurity providers.

Delevska said there is some product overlap, including zero trust, but Cloudflare is seeing a larger AI-related growth impact.She said Palo Alto and CrowdStrike could eventually see revenue growth reaccelerate as AI-related threats increase and agentic AI adoption grows, but their valuations remain elevated.

Of the analysts covering Cloudflare, 27 rate it “Buy,” seven rate it “Hold” and three rate it “Sell,” with a consensus target of US$342.13.

-30-