NET
ACCE-researchedOverview
ACCE thesis
Cloudflare operates the world's largest edge computing network, running 320+ data centers that accelerate and secure web traffic for 30 million internet properties. The company sits at the nexus of three secular growth trends: edge computing adoption, zero-trust security migration, and AI inference workload distribution closer to end users. Management expects their new AI inference platform to generate $1 billion in annual revenue within five years, building on existing relationships with hyperscalers and enterprises already paying for core CDN services. Trading at 24x forward sales with 34% revenue growth, NET captures expanding wallet share as customers consolidate multiple point solutions into Cloudflare's integrated platform. The stock declined 15% over the past three months despite accelerating large customer growth, creating an entry point into the infrastructure layer powering internet performance and security.
- severeExtreme valuation vs fair valueStock at $302 vs model fair value $165, implying ~83% premium. Forward P/E 250x and EV/EBITDA 2748x signal extreme overvaluation.
- highMassive EPS missQ3 2026 EPS surprise of -66.7% signals significant execution shortfall versus consensus expectations.
- highHeavy insider sellingInsiders sold $58M with zero buys in last 10 disclosed transactions, despite holding 65.3% of shares.
- moderateNegative operating marginsOperating margin -7.9% and net margin -8.2% despite 72.6% gross margin; profitability remains elusive at scale.
- moderateElevated debt loadDebt/Equity ratio of 2.24 is high for an unprofitable software company, adding financial risk if growth slows.
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
Price
Valuation
INVESTORSix independent models converge on one confidence-weighted fair value, with full methodology and editable assumptions.
- +All six models: DCF, P/E and EV/EBITDA comps, Graham, dividend discount, residual income
- +Scenario bands, sensitivity tornado, and the 5-year historical valuation range
- +Editable DCF workbench with saved scenarios
Quality
INVESTORThe full quality picture: conviction breakdown, earnings quality, score history, and backtested returns.
- +Conviction score breakdown and earnings-quality grade
- +Growth / value / quality / momentum component scores
- +90-day score history and score-threshold backtests
Analysts
Wall Street consensus
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
- +Price-target low / average / high vs the current price, with implied upside
- +Forward revenue and EPS consensus by fiscal year
- +ACCE fair-value models lined up against the Street
Smart Money
PROFollow the institutions: 13F position changes, insider trades, and active 13D activist filings.
- +Quarter-over-quarter institutional position changes
- +Recent open-market insider transactions
- +Active 13D activist filings and top holders
Compare
Where it sits vs peers
Algorithmic peers (6)
| Ticker | Company | Mcap | P/E | ROE | D/E | Yield | Quality | |
|---|---|---|---|---|---|---|---|---|
| FTNT | Fortinet Inc. Common Stock | $124.6B | 59.8 | 117.4% | 0.81 | 0.0% | - | Compare |
| SNPS | Synopsys Inc. Common Stock | $73.8B | 67.1 | 3.7% | 0.48 | 0.0% | - | Compare |
| CRWD | CrowdStrike Holdings Inc. Class A Common Stock | $243.3B | 4753.0 | 1.5% | 0.17 | 0.0% | - | Compare |
| XYZ | Block Inc. Class A Common Stock | $45.8B | 136.2 | 1.6% | 0.39 | 0.0% | - | Compare |
| CRWV | CoreWeave Inc. Class A Common Stock | $44.9B | - | -43.6% | 6.41 | 0.0% | - | Compare |
| PANW | Palo Alto Networks Inc. Common Stock | $297.4B | 909.0 | 1.7% | 0.06 | 0.0% | - | Compare |
Sector report card
Where NET ranks against its sector peers on each metric.
News and Record
Press releases mentioning this company
- Business Wire•Sep 15, 2026Cloudflare Helps End the Search-or-AI-Training Tradeoff
- Business Wire•Sep 3, 2026Cloudflare Partners with OpenAI Daybreak Models to Redefine Vulnerability Management with AI-Powered Edge Defense
- Business Wire•Sep 2, 2026Cloudflare Expands Support for AI Coding Agents with Cursor Cloud Agents on Cloudflare Sandboxes
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Recent performance
SEC filings
Recent ACCE blog coverage
- ACCE AI Infrastructure Index Analysis: Why Tech Giants Rule This PortfolioDeep dive into ACCE's AI Infrastructure Index with 1009.17 NAV. Analyzing top holdings like NET, DDOG, META and the concentrated tech strategy driving returns.2026-04-17