NET · NYSE · STOCK
Cloudflare (NET) Stock Analysis
$360.77
52W $158.83 – $370.35
56/100
$128.13B
-619.1
1.65
Is NET Bullish or Bearish?
Mixed.
Innellis AI committee rates Cloudflare Inc. (NET) Watch with a composite score of 56/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +4.49 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -15.51 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — revenue growing 33.5% yoy -- genuine top-line momentum. Risk Analyst remains cautious — high leverage (debt-to-equity 2.24) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- Revenue growing 33.5% YoY -- genuine top-line momentum — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- Trend and market structure agree -- coherent bullish picture — Technical
- Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
- Price-to-book of 47.3x prices in significant intangible value — Value
- ROE of only -13.9% -- cheap may mean cheap for a reason — Value
- Debt-to-equity of 2.24 adds balance-sheet risk to the value case — Value
- MACD histogram negative -- bearish momentum — Technical
- Weekly RSI at 77 -- overbought on the larger timeframe too — Technical
- High leverage (debt-to-equity 2.24) amplifies downside in a stress scenario — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
56/100
Agreement
67%
Analysts
6
Conviction
Contested
Sector Rank
Top 70%
of 287 Technology peers
Value Analyst
bearish
32
/ 100 · Moderate confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
− Price-to-book of 47.3x prices in significant intangible value
Growth Analyst
bullish
83
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ Revenue growing 33.5% YoY -- genuine top-line momentum
Technical Analyst
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
30
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.24) amplifies downside in a stress scenario
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 56.3 to 55.5.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Technical Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
63.0
Neutral
MACD Histogram
-1.540
Bearish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Bollinger %B
0.82
Inside Bands
Price vs Moving Averages
EMA 9
$350.28
Above
EMA 21
$340.83
Above
EMA 50
$317.94
Above
EMA 200
$256.57
Above
Fundamental Analysis
Valuation
33
Growth
89
Profitability
25
Financial Health
50
Cash Flow
70
Valuation
P/E Ratio
-619.1×
P/B Ratio
78.96×
PEG Ratio
4.36
Dividend Yield
0.00%
52W High
$370.35
52W Low
$158.83
Quality & Growth
ROE
-700.9%
ROA
-169.4%
Gross Margin
7257.6%
Operating Margin
-1410.6%
Revenue Growth YoY
—
Debt / Equity
2.18
AI Fundamental Assessment
P/E ratio of -619.1 (inexpensive relative to a 15-40x range); Price-to-book of 79.0x; PEG ratio of 4.4 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -7.0%; Return on assets of -1.7%; Net margin of -8.2%; Gross margin of 72.6%; Current ratio of 1.82 (healthy short-term liquidity); Debt-to-equity of 2.18; Free cash flow per share is positive (1.07); Most recent quarter beat estimates by 6.5%; 5 consecutive earnings beats; EPS growth accelerating (-10.7% -> +16.0% QoQ); Average YoY EPS growth of 38.1%; Analyst estimates flat over recent quarters
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