Cloudflare (NYSE: 
NET) jumped in premarket trading after Barclays initiated coverage with an Overweight rating and a $235 price target. Shares rose roughly 3% as analysts led by Saket Kalia outlined a strong multi-year growth roadmap supported by Cloudflare’s expanding product ecosystem and accelerating market share gains.
Barclays highlighted Cloudflare’s unique homogeneous global network, which currently supports nearly 20% of the internet. Because the entire network can run any Cloudflare service at any time, the company is able to scale new offerings quickly and capitalize on secular trends such as cybersecurity expansion, AI inference, cloud adoption, and emerging “no-click” search.
Cloudflare organizes its business into four product suites, or “Acts.” According to Barclays, Act 1 delivered about 85% of FY24 revenue, while Acts 2 and 3 contributed the remaining 15%. However, Acts 2 and 3 are growing materially faster and tapping into large, rapidly expanding markets where Cloudflare continues to take share. Analysts believe this evolving mix will strengthen revenue durability as the company moves deeper into security, AI, and developer tooling.
Barclays expects 27%–30% annual growth through FY28, driven by continued share gains and broader adoption of Cloudflare’s enterprise contracts. While valuation is elevated relative to peers, analysts argue that sustained 30% growth rates are rare in large-cap software — and historically, markets have rewarded companies able to maintain this trajectory. Cloudflare’s focus remains on the Rule of 40, balancing high growth with improving profitability over time.
Technicals
NET remains in a strong bullish structure. After hitting the $260 resistance, price retraced toward the $180 support zone, where buyers quickly stepped in. The rejection at support confirms bullish momentum, with upside targets now pointing back toward $260. As long as price holds above $180, bulls remain firmly in control.
NET) jumped in premarket trading after Barclays initiated coverage with an Overweight rating and a $235 price target. Shares rose roughly 3% as analysts led by Saket Kalia outlined a strong multi-year growth roadmap supported by Cloudflare’s expanding product ecosystem and accelerating market share gains.Barclays highlighted Cloudflare’s unique homogeneous global network, which currently supports nearly 20% of the internet. Because the entire network can run any Cloudflare service at any time, the company is able to scale new offerings quickly and capitalize on secular trends such as cybersecurity expansion, AI inference, cloud adoption, and emerging “no-click” search.
Cloudflare organizes its business into four product suites, or “Acts.” According to Barclays, Act 1 delivered about 85% of FY24 revenue, while Acts 2 and 3 contributed the remaining 15%. However, Acts 2 and 3 are growing materially faster and tapping into large, rapidly expanding markets where Cloudflare continues to take share. Analysts believe this evolving mix will strengthen revenue durability as the company moves deeper into security, AI, and developer tooling.
Barclays expects 27%–30% annual growth through FY28, driven by continued share gains and broader adoption of Cloudflare’s enterprise contracts. While valuation is elevated relative to peers, analysts argue that sustained 30% growth rates are rare in large-cap software — and historically, markets have rewarded companies able to maintain this trajectory. Cloudflare’s focus remains on the Rule of 40, balancing high growth with improving profitability over time.
Technicals
NET remains in a strong bullish structure. After hitting the $260 resistance, price retraced toward the $180 support zone, where buyers quickly stepped in. The rejection at support confirms bullish momentum, with upside targets now pointing back toward $260. As long as price holds above $180, bulls remain firmly in control.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.