• Cloudflare raised 2022 revenue guidance by $13 million to $970 million.
  • NET stock up more than 20% on Friday's premarket just below $70.
  • Cloudflare beat on top and bottom lines for the second quarter.

Cloudflare (NET) stock is up more than 20% at $70.31 in Friday's premarket after raising guidance that blew wind back into the sales of this once leading growth stock. On the cybersecurity company's earnings call on Thursday evening, Cloudflare broke even on adjusted earnings, beating the Wall Street average forecast by a penny. Revenue drifted upward to $235.5 million, which outdid the consensus of $227.3 million.

Also readApple Stock Deep Dive: AAPL price target at $100 on falling 2023 revenues

What made the stock go berserk after-hours, however, was management raising guidance for full-year revenue from an anticipated $957 million from prior guidance to a midpoint forecast of $970 million. With few companies raising guidance this quarter due to perceived weaknesses in business and consumer spending, as well as inflationary and recessionary worries, Cloudflare stuck out like a sore thumb... made of gold

Company executives said the long-loss-running titan would achieve positive free cash flow in the second half of the year and produce full-year adjusted EPS of 3 to 4 cents. Profits are very welcome, no matter how small, in this climate of rising interest rates, and so these facts likely ushered in more of the market's euphoria.

Revenue rose 54% YoY, and Cloudflare added 212 million large customers for a total of 1,749. These are customers with contracts worth more than $100,000 annually.

"These large customers now represent 60% of our revenue, up from 50% six quarters ago," said CEO Matthew Prince. "This trend illustrates how large, established enterprises increasingly form the foundation of Cloudflare's business. In fact, today, 29% of the Fortune 1,000 are already paying Cloudflare customers, a nearly threefold increase over when we went public less than three years ago."

Cloudflare stock forecast

Cloudflare stock is back near the high from May 6, the day after NET shares gapped down on poor Q1 results. That high was $70.15, and NET shares in the premarket are currently closer to $68 after making a run for that barrier. 

NET stock has gapped up from Thursday and could eventually make a run at the $76 level from the initial gap down from the May 5 low. The Moving Average Convergence Divergence (MACD) indicators is trending in the correct direction by recently crossing above the zero threshold.

NET stock support is at $48 from the ascending bottom trend line, and long-term support is at $39. 

 

NET stock chart

NET daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD continues to decline toward 1.0250 during the American trading hours on Friday. After the data published by the UOM showed that the long-run inflation outlook rose to 3% in August from 2.9% in July, the dollar gathered strength against its rivals, weighing on the pair.

EUR/USD News

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD is trading deep in negative territory near 1.2100 during the American session on Friday. With the UoM's Consumer Sentiment Survey pointing to a modest increase in the long-run inflation outlook, the US Dollar Index extended its rally, reflecting a broad dollar strength.

GBP/USD News

Gold clings to modest gains above $1,790

Gold clings to modest gains above $1,790

Gold stays relatively resilient on Friday and trades modestly higher on the day above $1,790. Although the greenback continues to outperform its rivals on the latest US data, falling US Treasury bond yields help XAU/USD hold in positive territory.

Gold News

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shytoshi Kusama, the project leader of Shiba Inu announced the launch of Shiba Eternity for Vietnamese players. The game is available for testing and the team has asked users for their review. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures