Jim Cramer - Mad Money Cloudflare NET-N BUY Oct 02, 2024

Shares popped 7% today when they announced several AI initiatives. A longtime favourite of his. They have partnerships with Nvidia, Microsoft and Meta. They help businesses operate more efficiently.

Too late to buy now after a big move. Wait for a pullback.

A lot of tech companies are down significantly from highs. Cybersecurity is a desirable area right now. High growth has to expect more pronounced swings. Likes the name.

They have their investor day Thursday. It's been down since the last quarter. But he likes it and sees a comeback. Will depend on how well CEO performs on Thursday.

Shares pulled back despite reporting a beat earlier this month, but a disappointing forecast.  Worth a look, though.

A great CEO, and the company knows a lot about video streaming. Likes it. The high PE doesn't bother him.

Up 19% in a week. Is breaking out. AI data is driving 27% revenue growth and 29% profits this quarter. They're in the sweet spot.

Soared last month after a great quarter, but has fallen hard since. Q4 net cash flow beat estimates. Likes this company and the cybersecurity space.

NET is certainly not cheap at 235 P/E (forward earnings) after a 75% gain this year. But it is debt-free with $500M cash, and transitioning from losses to high profits. In 2022 it lost $190M and next year is supposed to make $390M. There has been a big fundamental shift here. It has 20 BUYS, 13 HOLDS and 3 SELLS, with an average target price $167 (lower than market now). Short interest is only 3.7% so those that do not like it are not really 'betting' too much on a decline by shorting the stock. It is well-positioned within the sector and revenue is expected to rise at least 25% in the second quarter. Its valuation is the main risk but business is very good and we would see it more as a HOLD than a SELL today. 
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