Buy Cloudflare Shares
Published: 2 November 2021 by Andrew
Cloudflare is an American company known above all for its cloud systems, which improve the speed of websites and protect them from hacker attacks. The need for security is increasing and the growth of this company has attracted many investors, who are wondering if to buy Cloudflare shares is a good move or if the market price is already too high.
To answer correctly, we must deeply analyze the company, its structure, the services offered and the quality of the same.
Furthermore, it is necessary to understand if the upward trend of the stock still has room to continue its run or if it has already reached a price level that encompasses all the present and future progress of the company.
To understand what happens, we need to analyze:
- The fundamentals of the company
- The reference market
- The prospects for development
Here is a diagram highlighting the relevant data of this American company:
|Listing||👜 New York stock exchange|
|Sector||🧪 Internet Services|
|Turnover||💰 431 millions dollars|
|Best Platforms||📈 eToro / Trade.com|
To buy Cloudflare shares you need a broker, so here is a short list of the best online trading platforms on the market:
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Cloudflare live price
Here is the Cloudflare share price in real time:
Cloudflare: the company
Cloudflare Inc. was recently founded, in 2009 in San Francisco, by some IT experts who came from other companies: Matthew Prince, Lee Holloway and Michelle Zatlyn.
The idea behind the project was to use a cloud platform to accelerate the loading speed of websites and at the same time protect them from cyber attacks.
The level of protection provided by this company’s services is good and its use has quickly spread to major companies, government agencies and institutions around the world.
Among the services offered, Cloudflare has also developed a system to protect the computer systems used for political elections.
The IPO took place in 2019, with a starting offer of just $ 15 per share on the New York Stock Exchange. There are currently over 25 million websites that use the protection and acceleration systems offered by the Californian company.
How to buy Cloudflare shares
Cloudflare shares are listed on the NASDAQ of the New York Stock Exchange, but to buy them you simply need an intermediary that allows you to trade online.
These intermediaries are mainly of two types:
- Traditional Brokers, which provide for the opening of a securities account, the payment of stamp duty and trading commissions.
- CFD Brokers, who offer Contracts for Difference, do not need a securities account, do not pay stamp duty and do not provide for trading fees.
If you are interested in investing long-term and putting the shares “in a drawer”, the classic brokers, despite the high commissions can be considered, especially if you have considerable capital.
But if you prefer online trading and want to start with small capital, it is better to opt for CFD brokers, which offer a number of advantages:
- They also allow you to do short selling
- No trading fees
- Small investments can be made
- The trading platforms are very intuitive
- Demo account to practice
Where to buy Cloudflare shares
Regardless of the type of Broker chosen, what matters is that it is a regulated intermediary, which has a regular license issued by an institution of undoubted reputation, such as CySEC or CONSOB.
Licenses are essential if you want to avoid the frequent trading scams that rage on the web.
So where to buy Cloudflare stock?
On a reliable online broker, such as those proposed in this guide, which are all regulated! In the next 3 paragraphs you will be able to better evaluate the characteristics of the best intermediary to buy Cloudflare shares, choose carefully.
eToro represents our first choice when it comes to online brokers, which offer CFDs, because it is extremely safe and offers a range of services that are hard to match.
Its over 20 million members only confirm its fame and in our country it has obtained the prestigious CONSOB and CySec licenses, which protect European investors.
Its trading platform is considered one of the most intuitive in circulation and the offer of securities and assets is extensive to say the least. You can trade in both stocks and commodities, indices, currencies and cryptocurrencies, always without paying commissions.
Here’s what the Cloudflare stock looks like on the eToro platform:
How do you buy Cloudflare shares with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 50)
- Select the Cloudflare stock and click on “Trade”
- Decide whether to buy or sell the shares and how much to bet in the operation
If you prefer to delegate your investments to more experienced traders, with eToro you can choose Copy Trading, a truly unique patent.
This tool allows you to copy the operations that are performed by the best traders in the world (chosen by you on the platform) and replicate them on your trading account.
In this way you will get the same returns (based on the investment made) of the copied traders, automatically and without extra costs.
Here are some of the traders you might copy:
Click here and choose which trader to copy
Trade.com is part of that small number of extremely popular CFD brokers in Europe, thanks to the licenses issued by CONSOB and CySec.
The protection of an entity such as our CONSOB allows you to use a Broker with extreme peace of mind and security.
This financial intermediary allows you to trade without paying commissions, not only in stocks but also in commodities, indices, cryptocurrencies, forex, etc.
At the educational level, Trade.com has created an extremely complete Trading Course, written in a simple language without the usual technicalities.
The ebook is free and represents an effective guide in the world of technical analysis, here is the link to download it:Download the Trading Course for free by clicking here
Trade.com offers two free but professional trading platforms: MetaTrader 4 and the Web Platform.
The latter can be seen in the screenshot of the Cloudflare title below:
To buy Cloudflare shares on Trade.com you need to follow these simple guidelines:
- Register for free on Trade.com
- Log into your real account by depositing at least € 100
- Select the Cloudflare stock and click “Buy” to buy or “Sell” to short sell
- Decide how much to invest in the operation
Cloudflare business model
Cloudflare offers a series of services developed around a cloud platform. These services can be summarized as follows:
- Cyber security, firewalls, secure connections and products to improve the speed of a website.
- Smart routing, software development kits for mobile devices and custom computer systems.
- Load balancers, anycast network, virtual backbone, DNS, and many other tools to improve the efficiency of a website.
We’ve listed some data related to Cloudflare below:
- Foundation: July 2009
- Component: NASDAQ, Russell 1000
- Industry: Internet And Cloud Computing
- Headquarters: San Francisco, California, USA
- CEO: Matthew Prince
- Revenue: $ 431 million (2020)
- Net profit: $ -119.4 million (2020)
- Number of employees: 2432
Is it worth buying Cloudflare shares?
Cloudflare processes an average of 25 million website requests every second and acts mainly behind the scenes, without the user being aware of it.
But the quality of its services is undeniable and the defenses against cyber attacks make the difference between a truly secure site and one that is not.
Considering the evolution of e-commerce, the need for protection for websites is increasing and the demand for protection systems is growing rapidly.
Its growth rates indicate that Cloudflare is intercepting that very demand. Revenue increased by 50% in 2020 and turnover is also growing this year, by about 46%. The second quarter of 2021 in particular recorded a growth in turnover of 124%.
All things considered, analysts believe buying Cloudflare stock is affordable, but the stock price is in uncharted territory and caution is needed:
ISIN code of Cloudflare is US18915M1071.
Cloudflare’s main competitors are important IT companies, even if this company seems to have achieved a truly unparalleled market penetration coefficient. Here are the major competitors of the Californian company:
Cloudflare shares forecast
The Forecast on Cloudflare are positive but not as expected. This is mainly due to the fact that the company is not yet profitable. The liabilities always frighten investors, who are hesitant.
But the lack of a profit is only temporary, as some believe next year will be the first positive results for Cloudflare, which appears to have bright long-term prospects.
The growth trend is constant, but the stock makes new all-time highs too frequently and this makes it very difficult to make forecasts:
Cloudflare is a classic example of growth investing and the volatility of the stock demonstrates great interest from investors. Here are the estimates of some of the major market analysts:
- Zacks Investment Research downgraded Cloudflare from an “expected” rating to a “sell” rating.
- Oppenheimer downgraded Cloudflare from an “outperformance” rating to a “market performance” rating.
- Mizuho raised its Cloudflare price target from $ 96.00 to $ 105.00 and assigned the stock a “neutral” rating.
- Needham & Company LLC has set a “buy” valuation and a price target of $ 140.00 for the company.
- Royal Bank of Canada raised its price target on Cloudflare from $ 100.00 to $ 130.00 and gave the stock an “outperformance” rating.
Cloudflare target price
The ratings issued by sector analysts regarding the Cloudflare stock are rather bullish. Of the 20 estimates we have analyzed, 8 are for maintenance and 12 are for purchase.
The resulting average target price is $ 161.00 per share within the next 12 months.
Cloudflare is one of the most interesting IT companies in the web security landscape. The growing demand for protection against hackers has made this Californian company a true leader in the sector, thanks to its cloud services.
Analysts believe that buying Cloudflare shares is a good investment, even if it is very difficult to make long-term predictions. In the short term, it is possible to follow the fluctuations of the stock by trading online with CFD brokers, which allow, if necessary, also to aim downwards.
The lack of commissions makes these intermediaries prefect for this type of speculation, but if you do not have sufficient experience it is preferable that you practice on the Demo account, without taking risks.
Once you have optimized your best strategy in Demo, you can easily switch to the Real account. Here are the links to immediately access the Demo accounts of the best CFD Brokers:
- Access the eToro Demo account for free by clicking here
- Register on Trade.com and try the Demo account by clicking here
Cloudflare debuted on the stock exchange in 2019, with a listing on the NASDAQ.
Cloudflare is headquartered in San Francisco, California.
The average target price for Cloudflare shares is $ 161.00 per share within the next 12 months.
On eToro, one of the safest and most affordable online brokers on the market.