Cloudflare Stock On The Rise And Looks To Extend Weekly Win Streak

Cloudflare (NET) stock is rising and building the right side of a deep cup base. Its performance this year is trouncing the volatile stock market as investors see growing demand for the cloud security leader’s artificial intelligence products and technology that protects from threats.

Monday’s IBD 50 Growth Stocks To Watch pick is bouncing up about 4% in light volume after a two-day sell-off. The AI and cloud network security provider has shown positive IBD Methodology traits with accelerating earnings and sales growth over the last three quarters.

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Cloudflare connects, builds and protects websites, apps and AI agents. The stock is up more than 13% this year compared with the S&P 500’s nearly 4% slump.

The company’s AI security platform protects models from abuse, secures access and prevents data exposure. And its AI Gateway monitors, controls and optimizes AI applications. Cloudflare also provides cloud connectivity, phishing, email, and workspace security to enterprise and small businesses.

Cloudflare stock is part of the IBD Big Cap 20 and IBD Sector Leaders lists as well. The IBD 50 stock ranks No. 1 out of 120 stocks in the Computer Software-Enterprise group, which holds the 139th spot out of the 197 industry groups that Investor’s Business Daily tracks.

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Cloudflare Stock Climbs Back

The AI stock is building the right side of a first-stage cup base with a 260 buy point, according to MarketSurge pattern recognition. The entry point is also its all-time high reached on Nov. 3.

The cloud security stock popped 6.6% on Wednesday. The jump came on news that the company is looking for a partner and is considering Coinbase (COIN) to issue a stablecoin for use in AI transactions.

Shares are on pace for four straight weeks of increases and are gaining ground above their 200-day moving average. And its relative strength line is back on the rise after a February low. Cloudflare has outperformed 88% of stocks that IBD tracks.

Mutual funds have added Cloudflare stock to their portfolios for five straight quarters, as seen on IBD Stock Checkup. Four IBD Mutual Fund Index names hold the AI stock. The biggest by far is JPMorgan Large Cap Growth Fund (SEEGX), with 5.48 million shares of Cloudflare as of the December quarter.

At IBD, Cloudflare stock has a best-possible Composite Rating of 99 and an Earnings Per Share Rating of 98.

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AI Protector Shows Growing Profits

Cloudflare topped fourth-quarter earnings and sales estimates on Feb. 10. The company had “an exceptionally strong end to 2025,” Cloudflare Chief Executive Matthew Prince said in its earnings report. In the fourth quarter, the company closed its largest annual contract value deal ever, averaging $42.5 million per year, he noted.

Its quarterly profit jumped 47% from flat earnings three quarters prior. Meanwhile, revenue growth ramped up to 34% from 27% in the quarter that had flat profit. Cloudflare said its 2025 revenue increased 30% to $2.168 billion.

It expects first-quarter revenue of $620 million to $621 million, and 2026 sales between $2.785 billion to $2.795 billion. Analysts see its 2027 sales rising 27% to around $3.5 billion.

Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.

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