Cloudflare, Inc. (NYSE:NET) shares fell sharply Friday as investors reacted to valuation concerns despite another quarterly earnings beat.
The pullback came even as analysts highlighted the company’s long-term artificial intelligence and network infrastructure growth opportunities.
Earnings Snapshot
The firm reported first-quarter revenue of $639.76 million, beating estimates of $621.87 million, while adjusted EPS of 25 cents topped estimates of 23 cents.
Despite the quarterly beat, the stock traded lower Friday as investors weighed valuation concerns and broader market sentiment.
Analyst’s Take
Goldman Sachs analyst Gabriela Borges reiterated a Buy rating on Cloudfare, raising the price forecast from $250 to $266.
Borges said Cloudflare’s business model benefits from consistent growth across products at varying maturity stages.
Cloudflare could accelerate growth this year through improving product-market fit across multiple …
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