Josh Brown, CEO, Ritholtz Wealth Management Cloudflare NET-N BUY Feb 07, 2025

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.

On their 14th birthday, the cloud connectivity company announced new products, including AI Audit which allows users to be compensated when their content gets used to train gen-AI models, a big problem.

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

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. 
Unlock Premium - Try 5i Free 

Software, has done extremely well. 12-month price target of $232.

Intricate plumbing infrastructure behind the scenes that makes the internet work. Pushing more toward the edge as well as AI. Sort of a traffic cop for data so that small companies can monetize their data without it being scooped up by AI. Massive, exciting AI play. No dividend.