Cloudflare, Inc.

🇺🇸New York Stock Exchange

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Slightly Bearish -15

Cloudflare Stock Rockets Higher on AI "News." But Is It Really a Buy Now?

📉 Revenue guidance lowered from $1.34B to $1.28B amid economic headwinds.

🚀 Shares rebounded on AI security tools and Character.ai partnerships.

🤝 Nvidia AI infrastructure partnership dates back to April 2021.

💰 Stock trades at 15x expected sales with variable quarterly cash flow.

🛑 Analysts advise waiting for market stabilization before buying shares.

📉 Cloudflare stock dropped after Q1 2023 earnings due to lowered full-year revenue guidance amid economic headwinds.

🚀 The company's share price rebounded following announcements about AI security tools and partnerships with generative AI startups like Character.ai.

🤝 Cloudflare previously partnered with Nvidia in April 2021 to integrate AI computing infrastructure, predating current market hype.

💰 Management revised full-year 2023 revenue outlook down from $1.34 billion to approximately $1.28 billion.

📊 Shares are currently trading at nearly 15 times expected 2023 sales with variable free cash flow reported quarterly.

⚠️ The article characterizes the AI news as a continuation of existing strategy rather than a transformative new catalyst for immediate investment.

🛑 The author recommends passing on buying Cloudflare stock right now while waiting for market sentiment to stabilize.

📈 Motley Fool Stock Advisor recently excluded Cloudflare from their list of ten best stocks to buy.

Bullish Signals
  • Secures data safety for cloud-based AI companies.
  • Generative AI startups use R2 Storage for datasets.
  • Partnership with Nvidia since 2021 for GPU infrastructure.
Risk Factors
  • Revenue guidance lowered from $1.34B to $1.28B due to headwinds.
  • Macroeconomic speedbumps impacting financial trajectory for the year.
  • Free cash flow remains variable, indicating inconsistent liquidity.
  • AI announcements not game-changing for investment decisions.
Bullish Signals
  • Cloudflare's internet security suite includes specific tools designed to ensure data safety for AI companies operating in the cloud.
  • Multiple generative AI startups, including Character.ai and Leonardo.ai, are actively using Cloudflare's R2 Storage for managing massive training datasets.
  • The company has established a long-standing partnership with Nvidia since 2021 to fill its infrastructure with GPUs and software models for AI.
Risk Factors
  • Cloudflare lowered its full-year 2023 revenue guidance from $1.34 billion to approximately $1.28 billion due to economic headwinds.
  • The company is dealing with macroeconomic speedbumps that have impacted its financial trajectory for the year.
  • Free cash flow remains variable from one quarter to the next, indicating inconsistent operational liquidity.
  • The AI-related announcements are described as not being game-changing revelations that should independently inform an investment decision.
Bullish +65

5 Best Generative AI Software Stocks to Buy in June 2026

📈 Cloudflare named top generative AI stock for June 2026.

💰 Citizens sets $270 price target with Market Outperform rating.

📉 Truist raises target to $250 while maintaining Buy rating.

⚖️ UBS raises target to $250 but keeps Neutral rating.

🛡️ TD Cowen reiterates Buy rating citing AI agent security focus.

📈 Cloudflare (NET) is featured as a top generative AI software stock to buy in June 2026.

💰 Citizens maintained a Market Outperform rating on NET with a $270 price target following the June 9 Investor Day.

📉 Truist raised its price target for Cloudflare to $250 from $225 while maintaining a Buy rating.

⚖️ UBS raised its price target to $250 but kept a Neutral rating citing margin outlook concerns.

🛡️ TD Cowen reiterated a Buy rating on NET with a $265 price target, emphasizing AI agent security.

🤝 Cloudflare announced the acquisition of VoidZero to unify high-performance tooling into its ecosystem.

🚀 The acquisition aims to create a one-click deployment stack from local code to Cloudflare's global network.

📊 Analysts see NET evolving from an edge security provider to a unified platform for AI workloads.

📈 Other stocks in the list include Magnite (+10.7%), Barth & Body Works (+8%), and Lionsgate (All-Time High).

Bullish Signals
  • Acquired VoidZero for AI web.
Risk Factors
  • UBS Neutral rating cites margin outlook concerns.
  • Analysts monitor AI integration success with core business.
Bullish Signals
  • Citizens maintained a Market Outperform rating with a $270 price target, indicating strong institutional confidence.
  • Truist increased its price target to $250 from $225, reflecting positive sentiment on the stock's valuation.
  • TD Cowen reiterated a Buy rating with a $265 price target, highlighting Cloudflare's strategic role in securing AI agents.
  • UBS raised its price target to $250 following the company's Investor Day presentation.
  • Cloudflare successfully announced the acquisition of VoidZero to expand its AI-native web capabilities.
  • The company is transitioning into a unified platform covering security, network services, and developer tools.
Risk Factors
  • UBS maintained a Neutral rating on Cloudflare, explicitly noting concerns regarding the firm's margin outlook.
  • Analysts are monitoring the company's ability to successfully integrate AI positioning with its existing core business.
Bullish +65

CoreWeave Is Up 10% Today: Is It Outperforming Other AI Cloud Stocks Like Cloudflare and Snowflake?

📈 CoreWeave shares jumped ~10% to near $117 amid NASDAQ 100 inclusion.

💰 Q1 2026 revenue hit $2.08 billion, up 112% year-over-year.

🤝 Company secured a $99.4 billion backlog including $21B from Meta.

📉 Net loss was $740 million with $7.7 billion in capital expenditures.

🚀 Stock gained 64% YTD, outpacing peers Cloudflare and Snowflake.

📈 CoreWeave (CRWV) shares jumped ~10% to near $117, decisively outperforming peers Cloudflare and Snowflake which were down.

🏛️ The rally was triggered by CoreWeave's inclusion in the NASDAQ 100 index, forcing passive fund purchases.

💰 Q1 2026 revenue reached $2.08 billion, up 112% year-over-year, marking a record bookings quarter.

🤝 The company secured a $99.4 billion revenue backlog, including a major $21 billion commitment from Meta Platforms.

📉 CoreWeave reported a net loss of $740 million and incurred $7.7 billion in capital expenditures for the quarter.

📊 Analyst consensus target price is $140.18 with 22 buy, 11 hold, and 2 sell ratings currently active.

🚀 CoreWeave stock has gained 64% year-to-date, significantly outpacing Cloudflare's 18% and Snowflake's 9% gains.

⚠️ The index inclusion creates a short-term mechanical bid that may fade once the rebalance window closes.

📉 Peer companies Cloudflare and Snowflake lack immediate company-specific catalysts, causing them to drift lower.

🔍 Retail sentiment remains bullish with Reddit chatter scores ranging between 65 and 72 over the past week.

Bullish Signals
  • Q1 2026 revenue hit $2.08B, up 112% YoY.
  • Record backlog of $99.4B includes $21B from Meta.
  • Stock gained 64% YTD, outperforming peers like Cloudflare.
  • Analysts target $140.18, implying ~20% upside from $117.
  • Strong bullish profile: 22 buy vs 2 sell ratings.
Risk Factors
  • Q1 2026 net loss of $740 million indicates high burn rates.
  • Surge driven by index inclusion, not fundamental valuation shift.
  • Volatile new public stock faces choppy trading after passive buying fades.
  • Rapid price swings suggest keeping position sizes modest.
Bullish Signals
  • CoreWeave reported Q1 2026 revenue of $2.08 billion, a massive 112% year-over-year increase driven by strong AI infrastructure demand.
  • The company secured a record-breaking revenue backlog of $99.4 billion, featuring a substantial $21 billion commitment from Meta Platforms.
  • CEO Michael Intrator declared the quarter as having the strongest bookings in CoreWeave's history, validating its pure-play GPU cloud thesis.
  • CoreWeave stock has appreciated 64% year-to-date, significantly outperforming peers Cloudflare (up 18%) and Snowflake (up 9%).
  • Analyst consensus targets a price of $140.18, suggesting approximately 20% upside from current levels near $117.
  • The company holds a predominantly bullish analyst rating profile with 22 buy ratings compared to only 2 sell ratings.
Risk Factors
  • CoreWeave reported a significant net loss of $740 million for Q1 2026, indicating high burn rates despite strong revenue growth.
  • The stock's surge is largely driven by index inclusion mechanics rather than a fundamental shift in valuation or earnings power.
  • As a newly public and volatile name, CoreWeave faces the risk of choppy trading once the passive buying demand from index rebalancing fades.
  • Investors are advised to keep position sizes modest given the potential for rapid price swings in AI infrastructure names.