Cloudflare Rises 283% on AI Momentum $430M Volume Places Stock 239th in U.S. Trading Activity

Cloudflare (NET) rose 2.83% on August 15, 2025, with a trading volume of $430 million, ranking 239th among stocks in daily trading activity. The stock’s performance follows upward revisions to earnings estimates and growing investor interest in AI infrastructure.

Analysts highlight Cloudflare’s 26.7% revenue growth forecast for FY2025, driven by its AI strategy and expanding client base. Technical indicators show the stock has broken above its 30-day moving average of $196.74, while the 200-day average at $139.55 remains a key long-term benchmark. Call options with strike prices of $205 and $210 have seen heavy trading, reflecting leveraged bets on further upside potential.

Market dynamics underscore Cloudflare’s outperformance relative to its sector. While the Zacks Internet - Software industry gained 6.1% over the past month, the stock’s 2.83% gain suggests selective momentum in high-growth subsectors. This divergence is attributed to Cloudflare’s focus on high-margin cloud security solutions and AI-driven infrastructure, contrasting with weaker performance from peers.

Backtesting of Cloudflare’s stock shows a 58.51% win rate over three days, 62.77% over ten days, and 72.80% over 30 days following significant price movements. Historical average returns for these periods were 0.50%, 1.48%, and 4.28%, with a maximum 30-day gain of 8.59%. These metrics suggest a higher probability of positive returns in the short to medium term.

A strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 1-day return of 0.98% and a total return of 31.52% over 365 days. This approach captured short-term momentum but also reflected market volatility and timing risks.