Cloudflare Boosts Japan Security Services With Rakuten Mobile Partnership
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2025
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Should l Buy NET?
Source: Benzinga
Strategic Alliance: Cloudflare has partnered with Rakuten Mobile in Japan to provide Zero Trust security solutions as a managed service, aimed at enhancing cybersecurity for corporate clients and addressing the needs of small and medium-sized businesses (SMBs).
Market Impact: The collaboration is expected to help Japanese businesses improve their security posture amidst rising cyber threats, with Cloudflare's infrastructure and Rakuten's regional expertise facilitating cost-effective cybersecurity solutions.
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Analyst Views on NET
Wall Street analysts forecast NET stock price to rise
25 Analyst Rating
15 Buy
10 Hold
0 Sell
Moderate Buy
Current: 184.020
Low
131.00
Averages
253.24
High
318.00
Current: 184.020
Low
131.00
Averages
253.24
High
318.00
About NET
Cloudflare, Inc. is a connectivity cloud company. The Company delivers a range of services to businesses of all sizes and in all geographies, enhancing the performance of business-critical applications. Its full suite of products consists of application services that help deliver security, performance, and reliability for any organization's applications connected to the Internet, including Websites and application programming interfaces (APIs) and its secure access service edge (SASE) platform, which contains its suite of and workplace security services and network services solutions to help ensure traffic in and out of an organization’s network and devices is verified and authorized and data is protected and secured, as well as to securely connect data centers, cloud services, and branch offices to an organization with its connectivity cloud. The Company also offers developer-based solutions which build and deploys serverless and artificial intelligence applications.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Report Schedule: Cloudflare will announce its financial results for the first quarter ended March 31, 2026, after U.S. market close on May 7, 2026, providing crucial performance data that will help analysts gauge the company's future growth potential.
- Investor Conference Call: On the same day, Cloudflare will host an investor conference call at 2:00 p.m. Pacific time (5:00 p.m. Eastern time), where investors can participate by dialing +1 (646) 968-2727 or toll-free at +1 (888) 596-4244 with conference ID 3723782, aimed at discussing financial results and future outlook in depth.
- Live Webcast Replay: A replay of the conference call will be available approximately two hours after the live event and will remain accessible for about 30 days, ensuring that investors who cannot attend in real-time can still access important information, thereby enhancing transparency.
- Investor Day Event: Cloudflare will also host an Investor Day on June 9, 2026, at the New York Stock Exchange, where more information regarding the company's strategy and future developments will be shared, further strengthening engagement with investors.
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- Positive Market Reaction: Following a sharp 21% weekly decline, Cloudflare launched new tools to redefine AI agent construction and deployment, with stock rising over 7% on Monday, indicating a favorable market response to its new strategy.
- Dynamic Workers Innovation: The introduction of Dynamic Workers, a lightweight runtime for executing AI-generated code in secure environments, significantly enhances cost efficiency and scalability, poised to transform the way software is built.
- Expanded AI Infrastructure: The new Artifacts storage system and Linux-based Sandboxes support large-scale AI development, allowing agents to manage vast code repositories and build/test software in isolated conditions, further strengthening Cloudflare's competitive edge in AI.
- Optimistic Financial Outlook: Analysts expect Cloudflare to report first-quarter revenue of $622.8 million and earnings per share of $0.23, despite an over 8% decline in stock price year-to-date, the company is actively adjusting its strategy to navigate market pressures.
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- Enhanced Security: Cloudflare Mesh assigns a unique identity to each AI agent, enabling security teams to create more granular policies that allow specific agents to access staging databases while strictly preventing access to production financial records, significantly improving network security.
- Integrated Development Platform: The integration of Cloudflare Mesh with the Cloudflare Developer Platform, including Workers, Workers VPC, and Agents SDK, marks the company's first provision of an end-to-end lifecycle management for AI agents, enhancing operational flexibility for developers.
- Positive Market Reaction: Following the announcement, Cloudflare's stock price rose 1.44% in pre-market trading to $186.67, reflecting market optimism and confidence in the new product offering.
- Industry Impact: Despite an overall downturn in the software sector, Cloudflare's innovative initiatives may provide new growth opportunities in the competitive cybersecurity market, particularly as applications in AI continue to expand.
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- Software Stock Performance: Mizuho analysts highlight that despite solid consumption and adoption data from top-tier software firms, application software has significantly underperformed infrastructure software since February 2025, with current median SaaS underperformance at approximately 40 points, reflecting market concerns over AI disruption.
- Cloudflare's Positive Outlook: Mizuho's checks on Cloudflare yield favorable results, with expectations for the company to achieve its fourth consecutive quarter of revenue acceleration, despite a 13% stock drop since last week's Claude Managed Agents announcement, which analysts believe is overdone.
- ServiceNow's Large Deal Activity: ServiceNow's first-quarter checks reveal better-than-expected large deal activity, with Pro Plus gaining traction, and the company is expected to show solid 1Q constant currency cRPO upside relative to the 20% year-over-year growth guidance.
- Atlassian's Continued Growth Expectations: Although Atlassian's price target was lowered from $185 to $145, analysts maintain an Outperform rating, anticipating significant subscription revenue acceleration for the second consecutive quarter, indicating strong market demand.
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- AI Security Integration: The partnership between Cloudflare and Wiz integrates AI security features directly into the Wiz Security Graph, enabling organizations to comprehensively analyze and protect their AI applications, thereby enhancing security teams' responsiveness.
- Real-Time Traffic Detection: Cloudflare's AI Security for Apps runs real-time detections on requests to all LLM endpoints, identifying and mitigating risks such as PII leakage and prompt injection, ensuring the security of AI traffic.
- Sensitive Data Flow Mapping: Wiz maps data flows between AI applications, models, and data stores onto its Security Graph, allowing security teams to prioritize remediation of security gaps involving sensitive data interactions with AI workloads.
- Risk Prioritization for Remediation: The integration enables security teams to identify which unprotected AI endpoints have access to sensitive data, allowing them to prioritize fixing the highest-risk security gaps to ensure data safety.
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- Market Volatility: On Friday, the S&P 500 closed down 0.11%, the Dow Jones Industrial Average fell 0.56%, while the Nasdaq 100 rose 0.14%, reflecting a tug-of-war between software stock weakness and inflation concerns.
- Inflation Data Impact: The US March CPI rose 3.3% year-on-year, slightly below the expected 3.4%, marking the largest increase in two years but failing to boost market confidence, as the consumer sentiment index dropped to a record low of 47.6.
- Geopolitical Factors: Optimism surrounding US-Iran diplomatic negotiations has increased market sentiment regarding Middle Eastern tensions, although President Trump's comments about military readiness have raised concerns, putting pressure on stocks.
- Sector Performance Divergence: Software stocks faced declines due to AI disruption fears, with ServiceNow and Cadence Design Systems down over 7% and 5%, respectively, while chipmakers like Broadcom and AMD rose over 4% and 3% due to increased market demand.
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