Should I Buy NET? NET 2026 Analysis

Should You Buy Cloudflare Inc (NET) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

179.350

1 Day change

-2.99%

52 Week Range

260.000

Analysis Updated At

2026/01/26

Cloudflare Inc (NET) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company shows strong revenue growth and has positive analyst sentiment, the stock faces significant challenges such as declining profitability, high valuation concerns, and sector-wide pressures from AI-driven disruptions. Additionally, technical indicators and options sentiment suggest a lack of immediate upward momentum.

Technical Analysis

The stock's MACD is negative and contracting, RSI is neutral at 27.232, and moving averages are converging, indicating no clear trend. The stock is trading near a key support level (S1: 171.758), with resistance at 180.857. Overall, the technical setup does not suggest a strong buy signal.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Strong revenue growth of 30.68% YoY in Q3
Positive analyst sentiment with multiple Buy/Outperform ratings and price targets ranging from $220 to $
Continued momentum in AI and cybersecurity initiatives, which are long-term growth drivers.

Neutral/Negative Catalysts

Declining net income (-91.59% YoY) and EPS (-100% YoY), indicating profitability challenges.
Concerns over AI-driven disruptions and valuation compression in the software sector.
Neutral sentiment from hedge funds and insiders, with no significant trading trends.
Weak technical indicators and lack of immediate bullish momentum.

Financial Performance

In Q3 2025, Cloudflare reported revenue growth of 30.68% YoY, reaching $562.03M. However, net income dropped significantly by -91.59% YoY to -$1.29M, and EPS fell to 0, down -100% YoY. Gross margin also declined to 73.97%, down -4.79% YoY, reflecting profitability challenges.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts maintain a generally positive outlook, with multiple Buy/Outperform ratings. Recent price target adjustments reflect sector-wide valuation compression, with targets ranging from $220 to $300. Analysts highlight strong fundamentals, AI adoption, and cybersecurity growth but express concerns over AI-driven competitive disruption and macroeconomic pressures.

25 Analyst Rating

Wall Street analysts forecast NET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NET is 253.24 USD with a low forecast of 131 USD and a high forecast of 318 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Buy

10 Hold

0 Sell

Moderate Buy

Current: 184.880

Low

131

Averages

253.24

High

318

Current: 184.880

Low

131

Averages

253.24

High

318

TD Cowen

Buy

maintain

$265

AI Analysis

2026-01-27

New

Reason

TD Cowen

Price Target

$265

AI Analysis

2026-01-27

New

maintain

Buy

Reason

TD Cowen attributes the premarket rally in shares of Cloudflare to increasing awareness of the company's role in AI infrastructure due to social media discussions related to an open source AI assistant built on Anthropic's Claude model, Clawdbot. Following a weekend of online discussion around Clawdbot, investors appear to have associated the momentum behind the tool with Cloudflare's infrastructure solutions commonly used to deploy and secure agents, the analyst tells investors in a research note. TD says the Cloudflare Tunnel allows developers to connect locally run tools such as AI agents on the internet without exposing their servers. The firm reiterates a Buy rating on the shares with a $265 price target. The stock in premarket trading is up 13%, or $23.86, to $213.21.

RBC Capital

Matthew Hedberg

Outperform

maintain

$265

2026-01-27

New

Reason

RBC Capital

Matthew Hedberg

Price Target

$265

2026-01-27

New

maintain

Outperform

Reason

RBC Capital analyst Matthew Hedberg attributes the recent rally in shares of Cloudflare to investors making a "derivative call" around an increase in AI workloads, including Anthropic's Claude Code and Cowork as well as a new open-source AI assistant, Clawdbot. While Anthropic's Claude Code and Cowork as well as Clawdbot are "not likely needle movers" for Cloudflare in the short-term, the continued growth of AI agents benefits Cloudflare and its Workers platform, the analyst tells investors in a research note. RBC believes Cloudflare is a "Tier 1 AI winner through its inferencing opportunity, Workers platform, and more recently its pay-per-crawl opportunity." It keeps an Outperform rating on the shares with a $265 price target. The stock in early trading is up 13% to $214.33.

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NET Should I Buy

NET Should I Buy

Should You Buy Cloudflare Inc (NET) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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