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Here's Why Cloudflare (NET) Fell More Than Broader Market
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In the latest trading session, Cloudflare (NET - Free Report) closed at $217.55, marking a -2.25% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.44%, and the technology-dominated Nasdaq saw a decrease of 0.76%.
The web security and content delivery company's shares have seen a decrease of 1.53% over the last month, not keeping up with the Computer and Technology sector's gain of 3.34% and the S&P 500's gain of 1.14%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings report is expected on October 30, 2025. The company's upcoming EPS is projected at $0.23, signifying a 15.00% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $544.06 million, reflecting a 26.5% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.85 per share and a revenue of $2.11 billion, signifying shifts of +13.33% and +26.66%, respectively, from the last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.71% downward. Cloudflare currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 260.44. For comparison, its industry has an average Forward P/E of 28.74, which means Cloudflare is trading at a premium to the group.
We can also see that NET currently has a PEG ratio of 10.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.99.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Cloudflare (NET) Fell More Than Broader Market
In the latest trading session, Cloudflare (NET - Free Report) closed at $217.55, marking a -2.25% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.44%, and the technology-dominated Nasdaq saw a decrease of 0.76%.
The web security and content delivery company's shares have seen a decrease of 1.53% over the last month, not keeping up with the Computer and Technology sector's gain of 3.34% and the S&P 500's gain of 1.14%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings report is expected on October 30, 2025. The company's upcoming EPS is projected at $0.23, signifying a 15.00% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $544.06 million, reflecting a 26.5% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.85 per share and a revenue of $2.11 billion, signifying shifts of +13.33% and +26.66%, respectively, from the last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.71% downward. Cloudflare currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 260.44. For comparison, its industry has an average Forward P/E of 28.74, which means Cloudflare is trading at a premium to the group.
We can also see that NET currently has a PEG ratio of 10.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.99.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.