With tech-related stocks continuing to surge, Cloudflare (NET) is on pace for 27% growth in 2024, as it looks to become a key stock option for traders. To this point, the stock is up 12.7% year-to-date (YTD), but is still underperforming throughout the year. Currently, investors are awaiting any insight into a reversal from the sluggish trajectory.
The cloud-based network company has become a key leader in security and reliability. With companies like Microsoft (MSGT) and Amazon (AMZN) investing heavily in the industry, its growth is viewed as a certainty. Moreover, Cloudflare is a company with immense potential that is only matched by its lofty ambitions.
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Cloudflare Growth is Present but Sluggish: Is NET Still an Option?
As previously stated, cloud computing has surged in popularity in recent years. Amazon Web Services and Microsoft Azure have become leaders in the space. Moreover, they have orchestrated significant investments in growing their presence within the market.
For many traders who are optimistic about the industry, Cloudflare has become a popular investment option. But, its underperformance has spooked some investors. Currently, Cloudflare stock is on pace to grow 27% in 2024, while NET has certainly appeared sluggish in that growth.
According to Nasdaq, since its inception, NET has been growing 50% year-over-year until 2022. That rate declined significantly to 33% in 2023, until it settled at 27% for both 2024 and 2025. Still, it has seen tremendously impressive performances, turning profitable on a non-GAAP basis two years ago.
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Thereafter, 2023 saw Cloudflare register a 272% increase in earnings. But still, that number is poised to be notably smaller over the next two years. Specifically, earnings growth is projected at 45% in 2024, and a mere 18% in 2025.
Still, sentiment around NEt is still positive. It is well known and regarded for its innovation within the space. They have sought to build a better internet and feature a significant userbase that includes large corporations and small businesses.
In its Q2 earnings report, it noted significant customer growth. The figure increased 21$ year over year, with 168 new customers leading to more than $100,000 in annual revenue throughout the quarter. Over the last five years, the company has gained more than 511%, which makes it a rather smart long-term bet if you believe in the strength of the market.