Every investor has a name that lives on the watch list.
For me, with food stocks, it’s Cava
In tech, that name is Cloudflare (NYSE: NET). Cloudflare is not the most exciting artificial intelligence (AI) play, it is definitely not the cheapest infrastructure stock, and it just went through one of the worst weeks of its public life. Yet, Cloudflare’s underlying business keeps doing the kinds of things that matter over a five-to-10-year horizon, which is why it keeps drawing me back.
A bad week that exposes the long-term setup It’s been a brutal month for Cloudflare so far. In early May, the company announced its first large-scale layoff, cutting roughly 1,100 roles. CEO Matthew Prince attributed the decision to efficiency gains from AI, even as the company posted record revenue and beat both top- and bottom-line estimates for the first quarter.