Cloudflare Surges to 91st in Trading Volume with $779 Million in Shares Exchanged

On March 25, 2025, Cloudflare (NET) experienced a significant surge in trading volume, with a total of $779 million in shares exchanged, marking a 102.1% increase from the previous day. This surge placed Cloudflare at the 91st position in terms of trading volume for the day. The stock price of Cloudflare rose by 2.88%, marking the fifth consecutive day of gains, with a total increase of 10.75% over the past five days.

Cloudflare's stock has been known for its volatility, with 17 moves greater than 5% over the past year. The recent surge in stock price can be attributed to a double upgrade by Bank of America, which changed its rating from "Sell" to "Buy." This upgrade reflects Cloudflare's strong positioning in the artificial intelligence sector, particularly in AI-as-a-Service (AIaaS) for enterprises.

Despite a high price-to-book ratio of 41.68, which might suggest overvaluation, Cloudflare's strong financial metrics and growth potential justify its premium valuation. The company's Altman Z-Score of 11.37 indicates strong financial health, while the Beneish M-Score of -2.8 suggests that the company is unlikely to be involved in financial manipulation.

Cloudflare's significant expansion in operating margins and robust cash flow growth of 36.6% over the past year provide a solid foundation for future growth. With a forecasted revenue growth of 25.8% and a long-term perspective on the AI sector, Cloudflare's prospective leadership in AIaaS could yield promising returns. However, potential investors should be mindful of warning signs such as insider selling activities and faster asset growth compared to revenue, which could imply decreasing efficiency.