Cloudflare will gain momentum in artificial intelligence services as well as security products, predicted Bank of America, which double upgraded the stock to buy on Tuesday. Cloudflare stock climbed amid the news.
Bank of America analyst Madeline Brooks upgraded Cloudflare stock to buy from underperform on views revenue growth will accelerate. "We think Cloudflare is poised to be one of the true 'AI winners' in software," Brooks said in a report.
"The company offers a differentiated approach to AI, and we place a high probability on Cloudflare becoming the leader in AI-as-a-Service, which we expect will be the AI consumption method of choice for enterprises," Brooks added. "Cloudflare is gaining momentum in network security, particularly SASE, which should accelerate as firewall refresh cycles near and enterprises look to modernize with software-based security solutions."
Secure Access Service Edge, or SASE, offers a fast and cost-effective way of securing an organization's branch offices and remote workers.
Top Management Changes
Started in 2009, Cloudflare works to speed up and provide security for web applications routed through its intelligent global network.
On the stock market today, Cloudflare stock rose more than 3% to 128.57 in morning trades. Cloudflare stock has gained 21% in 2025 amid market volatility. But shares have retreated from their 52-week high of 177.37 set on Feb. 14.
In 2024, Cloudflare appointed Mark Anderson as president of revenue. Most recently the chief executive of privately held Alteryx, Anderson earlier served as president of cybersecurity firm Palo Alto Networks. Also, Cloudflare named Stephanie Cohen, formerly a Goldman Sachs executive, as its first-ever chief strategy officer. Then Cloudflare hired a former top ServiceNow executive, Chirantan "C.J." Desai, as president of product and engineering.
Further, Cloudflare has ties to generative artificial intelligence leader OpenAI. Cloudflare provides secure links to cloud services when consumers sign up to use ChatGPT.
Cloudflare Stock Technical Rating
Cloudflare also has increased investments in AI infrastructure. Cloudflare has deployed Nvidia AI chips in its global network.
In 2023, Cloudflare announced its "Workers AI" platform.
Meanwhile, Cloudflare stock holds an IBD Composite Rating of 95, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use gauge. The best growth stocks have a Composite Rating of 90 or better.
For the period that ended Dec. 31, Cloudflare earnings were 19 cents a share, up 26% from 15 cents a year earlier. Revenue climbed 27% to $459.9 million, the San Francisco-based company said.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
