Cloudflare(NET) Soars 1.77% on Strong Q1 Results

Cloudflare(NET) rose to its highest level since February 2025 today, with an intraday gain of 1.77%.

The strategy of buying Cloudflare (NET) shares after they reached a recent high and holding for 1 week yielded solid results over the past 5 years. Here’s a backtest analysis:

Return Performance:

- Annualized Return: The strategy achieved an average annual return of 33.42% over the past 5 years, surpassing the market by 19.04% annually.

- Cumulative Return: Initially investing $1,000 in NET 5 years ago would be worth $4,328.24 today, based on the current price of $122.10. This indicates substantial growth and outperformance.

Market Outperformance:

- Cloudflare outperformed the market by a significant margin, with a 24.8% annualized return over the past 5 years, beating the market by 19.04% annually.

- This performance reflects Cloudflare’s strong growth and market positioning, which has enabled it to deliver robust returns to investors.

Recent Performance Context:

- Cloudflare’s recent surge, with a 44% increase over the past month, highlights its continued growth momentum.

- Strategic partnerships and enhancements in cybersecurity capabilities are likely contributing to this positive performance.

In conclusion, the strategy of buying NET shares after they reached a recent high and holding for 1 week has been highly effective, leveraging Cloudflare’s strong growth and market outperformance. This approach remains relevant given Cloudflare’s ongoing growth trajectory and recent positive market dynamics.

Cloudflare's stock price has been influenced by several recent developments. The company's strong growth signals have been a significant driver, with the stock experiencing a notable increase of 10.42% over the past week. This surge was fueled by positive analyst reactions to the company's performance and future prospects.

On May 8, 2025, Cloudflare reported strong Q1 results, which led to a 9% increase in stock price. The positive financial performance and strategic initiatives have bolstered investor confidence in the company's ability to continue its growth trajectory.

However, Jefferies Financial Group recently lowered their price objective for Cloudflare's shares from $170.00 to $150.00 and set a "hold" rating. This change in analyst sentiment could have implications for investor confidence and may influence future stock price movements. Despite this, the overall sentiment remains positive, with many analysts continuing to see strong potential in Cloudflare's growth prospects.