Cloudflare Stock Is Soaring. Is It a Buy for 2025?

The growth of digital content and cloud computing drove more demand for content delivery networks (CDNs) like Cloudflare (NYSE: NET). Cloudflare has a large network of data centers that helps reduce latency and speed up performance for things like video streaming and cloud applications.The stock doubled in value since bottoming out in 2022. Strong financial results over the last two quarters helped send the stock up 33% in the last three months. The share price is sitting at $107 at this writing after recently hitting a 52-week high of $119.The stock is now trading at a more expensive valuation of 23 times trailing sales. To justify the valuation, Cloudflare may need to show even better revenue growth in 2025. While there are catalysts that could make that happen, there are also headwinds that could limit the stock's performance.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool