Cloudflare (NET) shares have been in a sharp uptrend on viral enthusiasm surrounding “Clawdbot,” an open-source artificial intelligence (AI) agent that’s seen rapid growth in developer interest.
The firm’s low-latency edge network and consumption-based pricing architecture helped it become the backbone for hosting and running Clawdbot, cementing its positioning within agentic AI.
While Cloudflare stock is already trading at more than double its price in April 2025, for long-term investors, it may still not be too late to build a position in this NYSE-listed firm.
Is It Too Late to Invest in Cloudflare Stock?
NET stock remains attractive as a long-term holding since about 80% of AI companies worldwide already depend on Cloudflare’s infrastructure.
This signals substantial existing revenue exposure to an emerging trend, validating management’s deliberate pivot to agentic artificial intelligence through strategic acquisitions and partnerships.
In fact, a senior TD Cowen analyst, Shaul Eyal, reiterated his “Buy” rating on Cloudflare this week. Eyal’s price target on the tech firm sits at $265, signaling potential upside of some 30% from here.
Note that NET is currently challenging its 100-day moving average (MA). A decisive break above $209 may accelerate bullish momentum in the near-term.
NET Shares to Rally on Upcoming Earnings
Beyond Clawdbot momentum, TD Cowen believes NET’s upcoming earnings will prove a catalyst that will drive its stock price higher in the near-term.
According to Barchart, the San Francisco-headquartered firm is expected to post $0.01 of profit per share on Feb. 10, up significantly from $0.03 a share of loss in the same quarter last year.
Analyst Shaul Eyal also remains convinced that Cloudflare’s longer-term goal of hitting $5 billion in annual recurring revenue by fiscal 2028 appears well within reach.
What’s also worth mentioning is that NET is going for about 35x sales at the time of writing, which isn’t inexpensive but not unheard of for a fast-growing AI stock either.
What’s the Consensus Rating on Cloudflare?
Despite a sharp rally in Cloudflare Inc this month, Wall Street continues to believe that it will push higher over the next 12 months.
The consensus rating on NET shares sits at “Moderate Buy” currently, with the mean target of about $241 indicating potential upside of nearly 20% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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