Cloudflare, Inc. (NET)

Cloudflare shares rose 3.05% in the latest session to $315.13, and the stock is up 18.21% over the past week after a quarter that beat expectations. The November 5, 2026 report showed adjusted EPS of $0.38 against a $0.34 estimate, and the stock rose 9.91% in the first session after it. Analysts were busy too: on November 6, 2026 Wolfe Research upgraded the stock to Outperform, while JP Morgan, Scotiabank and RBC Capital kept their ratings. The stock still sits 14.91% below its 52-week high of $370.35 and trades 1.12% below its 50-day average, so the rally has not yet cleared its medium-term trend line.

The November 5, 2026 report was the clearest driver of recent trading. Adjusted EPS came in at $0.38 against an analyst estimate of $0.34, a beat of 11.76%, and the shares rose 9.91% in the first session afterward. The stock has now beaten EPS estimates in seven of the last eight reports, but the market reaction has not been uniform: two of those beats were followed by a lower share price in the first session.

Analyst activity clustered around the report. On November 6, 2026 Wolfe Research upgraded Cloudflare to Outperform from Peer Perform, while JP Morgan, Scotiabank and RBC Capital kept their positive ratings. Jefferies kept its Hold rating on November 6 and again on November 7, 2026. Of 34 analysts with a current rating, 24 rate the stock buy or strong buy, 8 hold it and 2 sell it, and that buy count was also 24 three months ago.

The valuation is the main reason the stock is harder to justify on current numbers. Its price-to-sales ratio of 41.33 is far above the sector median of 7.6, and the GAAP EPS over the last 12 months is -$0.73, so the P/E ratio is not meaningful. Debt is also high, with a debt-to-equity ratio of 3.21, and return on equity of -17.00% is below the sector median of 13.4%. Insiders have sold about $1.0 billion of stock over the last 18 months across 127 sales and made no open-market purchases, although such sales are often planned in advance or made to cover tax on vesting shares.

The base case is that Cloudflare keeps its growth profile while the price works through the resistance band between the 50-day average and the 52-week high. Revenue grew 39.20% in the latest quarter, faster than the sector median of 24.2%, and analysts expect revenue to rise 32.5% this fiscal year and EPS to rise 45.5%. Those forecasts only matter if the company keeps converting growth into profit, and the stock remains loss-making on a GAAP basis, with a net margin of -8.7%. The median analyst target of $350.00 sits 11.1% above the price, and the range runs from $190.00 to $430.00. A fall back below the 20-day EMA at $299.24 would put the 200-day average at $251.97 back in focus and would weaken it. Because the stock's typical daily move is 4.83% and its beta is 1.37, the path is likely to be volatile in either direction.

Nearest support is the 20-day EMA at $299.24, which the price has recently held above. Below it, the 200-day simple moving average at $251.97 is the next level a decline would meet, and the 52-week low of $158.83 sits further down. Nearest resistance is the 50-day simple moving average at $318.70, the level a rise would meet first. Above that, the 52-week high of $370.35 is the next barrier.