Stock Price & Analysis

Based on the analysis of Confluent (CFLT) stock, the current price of $24.11 is below the average analyst price target of $37.62, suggesting potential upside. While the company shows strong revenue growth and a solid market position in data streaming and AI, the high insider selling activity and negative margins warrant caution.

Buy CFLT stock if you believe in its long-term growth prospects in the data streaming and AI sector. Sell CFLT stock if you are risk-averse due to its high valuation and profitability challenges.

Price Prediction for CFLT Stock in 2025

Based on current analyst projections and market trends, Confluent (CFLT) is expected to reach a price target of $38.00 by the end of 2025, with a potential upside driven by its strong positioning in the AI software sector. However, market conditions and peer performance could limit upside, with a floor price target of $30.00.

The S1 support level for CFLT Stock is $24.47 ,The R1 resistant level for CFLT Stock is $31.37.

As of the end of day on 2025-03-14, the price of CFLT Stock was $26.35.

The target price for CFLT Stock according to analyst rating is 37.62, with the highest price target at 42.00 and the lowest at 30.00. Analysts have a Moderate Buy rating on CFLT Stock overall.

The market cap of CFLT is $8.8B.

Analysis and Insights

Confluent (CFLT) appears overvalued based on several factors:

1. High Valuation Metrics:

   • EV/EBITDA: 11.40-9.34 (high for software peers).
   • PS Ratio: 10.63-7.05 (indicates high price relative to revenue).

2. Insider Selling Activity:

   • CEO Jay Kreps sold 14,800 shares recently, and insiders have sold 98 times in the past six months with no purchases, signaling negative sentiment.

3. Analyst Sentiment:

   • While some analysts maintain Buy ratings with targets like $37-$40, Loop Capital lowered its target to $30, citing market conditions.

4. Market Conditions:

   • The broader market is overvalued per the Buffett Indicator and other models, which may impact CFLT's valuation.

5. Extreme Fear Sentiment:

   • The Fear & Greed Index shows "extreme fear," suggesting market caution despite CFLT's strong AI positioning.

Conclusion

CFLT is likely overvalued due to high multiples, insider selling, and mixed analyst sentiment. Investors should wait for a price correction or clearer growth signals before buying.

Confluent, Inc. provides a data streaming platform. The Company is engaged in designing data infrastructure to connect the applications, systems and data layers around a real-time central nervous system. The Company is focused on developing a category of data infrastructure focused on data in motion for developers and enterprises. It enables enterprises to deliver customer experiences for their business functions, departments, teams, applications, and data stores to have complete connectivity. It is designed to have real-time data from multiple sources constantly streamed across an enterprise for real-time analysis. Its offering enables organizations to deploy production-ready applications that run across cloud infrastructures and data centers, with features for security and compliance. Its platform provides the capabilities to fill the structural, operational and engineering gaps in businesses. It enables software developers to build their applications to connect data in motion.

Price Prediction for CFLT Stock by 2030

Based on current trends and analyst projections, CFLT stock is expected to reach $60 to $80 by 2030. This prediction is supported by strong revenue growth, expanding cloud services, and increasing demand for data streaming solutions. Analysts highlight the company's solid execution and favorable market position as key drivers for long-term growth.

CFLT has a total of 2744 employees.