Should I Buy Cloudflare Stock in 2025? Complete NZ Analysis

What is Cloudflare?

How much is the Cloudflare stock?

The price of Cloudflare stock is rising this week. As of now, the current share price stands at $164.16 USD, reflecting a 1.35% increase over the last 24 hours and a notable 4.32% gain across the week. Cloudflare's market capitalisation is around $56.90 billion, with an average trading volume of 3.79 million shares over the past three months. The P/E ratio is not available at present, as the company remains unprofitable, and no dividend yield has been declared. The stock’s beta is 1.85, indicating higher-than-average volatility, which may appeal to growth-oriented NZ investors seeking dynamic technology exposure.

Our full analysis of the Cloudflare stock

Having thoroughly reviewed Cloudflare, Inc.'s (NET) latest quarterly financials alongside its impressive three-year share performance, we have leveraged a suite of quantitative and qualitative tools—including market data, technical readings, and peer benchmarking—refined through our proprietary algorithms. The result is a composite, conviction-driven view of a technology leader whose dynamic positioning continues to attract discerning institutional and retail investors alike. So, why might Cloudflare once again represent a strategically compelling gateway to the high-growth digital infrastructure and cybersecurity sector as we approach 2025?

Recent Performance and Market Context

Cloudflare’s stock has delivered an exceptional run, underscored by a 125% gain over the past 12 months and a striking 64.9% rally in the last six months alone. At $164.16 USD per share (as of 30 May 2025), the stock not only outperformed the S&P 500 and most cloud/security peers but did so with sustained investor enthusiasm, reflected in a robust $56.9 billion USD market cap.

• Record Enterprise Traction: A landmark $100 million contract secured in the last quarter highlights growing enterprise adoption and validates Cloudflare’s value proposition with large-scale customers.
• Consistent Revenue Outperformance: Q1 2025 revenue reached $479.1 million, exceeding analyst expectations by a notable 2.1%.
• Expanding Customer Base: Notably, large customer growth came in at +23% year-on-year, illustrating strong "land-and-expand" execution.

The macro backdrop remains decisively favourable. Demand for cloud-native security, DDoS protection, and edge networking is accelerating in the face of heightened cyber risks and digital transformation imperatives across sectors. For New Zealand investors, the global tech sector’s leadership in the MSCI World Index and ongoing outperformance of U.S.-listed cloud names provide additional confidence. Top-down tech optimism, coupled with Cloudflare's robust operating leverage, set the stage for further upside.

Technical Analysis

• Momentum Indicators: The 14-day RSI sits at 78.95, well into overbought territory, while the MACD (11.24) confirms ongoing upward momentum, albeit at a mature stage of the current trend.
• Moving Averages: The stock trades comfortably above its 20-day ($143.08), 50-day ($124.97), 100-day ($130.14), and 200-day ($110.84) simple moving averages, with each providing strong support levels. These readings reinforce a sustained uptrend, often indicative of institutional accumulation and strong investor conviction.
• Key Levels: The $130.38–$130.73 zone emerges as a formidable support, while the current price hovers near pivotal resistance at $164.41. The price structure suggests any consolidation at or above support may be short-lived, serving as a potential springboard for the next leg higher.
• Momentum Structure: While some technical indicators warn of a possible near-term pullback, structural momentum and continued breakouts signal buyers remain in control, particularly on medium- and longer-term timeframes.

Fundamental Analysis

• Outstanding Revenue Growth: Q1 2025 saw a 27% year-on-year jump in revenue, and management has reaffirmed FY25 guidance for $2.09–$2.094 billion—supporting a projected CAGR of 19.3% in coming years.
• World-Class Gross Margins: Gross margin printed at 77.1%, topping the upper end of management’s long-term target and outshining many SaaS and tech services peers.
• Strategic Expansion: Cloudflare’s rapid growth in EMEA and heightened penetration into the enterprise market are crystalising real, durable growth engines.
• Innovation Leadership: The company dominates segments like edge security and CDN, fuelled by relentless R&D, a global network footprint, and leadership in enabling AI workloads (serving 80% of AI startups).
• Profitability Trajectory: Although still loss-making on a net basis (Q1: -$38.45 million), Cloudflare continues to significantly narrow losses as scale builds, and positive non-GAAP EPS ($0.16) signals meaningful operational leverage is now at work.
• Attractive (if Premium) Valuation: While the absence of GAAP profits precludes a conventional P/E calculation, investors are rewarding Cloudflare’s industry-leading growth profile—with a forward-looking PEG and price-to-sales multiple justifiably elevated relative to slower-growing competitors.

Volume and Liquidity

• Consistent Trading Activity: An average daily volume of 3.79 million shares provides ample liquidity for even sizeable trades and derivative exposures, a key reassurance for NZ-based institutional and high-net-worth investors managing offshore equity positions.
• Market Confidence: Persistent high volume and a steadily appreciating float point to market consensus that Cloudflare's valuation is anchored by real business progress and not transient speculation.
• Float Dynamics: With over 304 million shares outstanding and no dividend obligations, the stock remains highly responsive to positive newsflow and high-velocity trading, offering dynamic repricing potential in response to fundamental catalysts.

Catalysts and Positive Outlook

• AI Ecosystem Leadership: As roughly 80% of AI startups run on Cloudflare’s architecture, the company stands at the crossroads of two secular megatrends: cloud security and AI adoption.
• Enterprise Expansion: Corporate and government clients are forecast to boost segmental revenue by 25% in 2025, underpinning a transition from SMB-heavy to enterprise-first revenue mix.
• Product Innovation and Ecosystem Expansion: Continued rollouts in edge compute, Zero Trust, and performance-as-a-service cement Cloudflare’s “one platform, many solutions” moat.
• Potential M&A or Strategic Partnerships: The company's cash flow and brand now position it to act as an acquirer or launch new, revenue-accretive alliances.
• Favourable Sector Tailwinds: The broader environment—rising cyber threats, regulatory pressures for better data protection, and explosive digital demand—operates as a force multiplier.
• Upcoming Earnings Catalyst: The Q2 2025 earnings report (31 July 2025) is likely to crystallise further upside if current momentum and guidance are upheld, a technical and fundamental inflection point for market participants.

Investment Strategies

• Short-Term Entry: A near-term pullback to the $130–$145 support band (should it occur) may provide judicious entry points, allowing for advantageous risk-to-reward setups ahead of July’s earnings report.
• Medium-Term Accumulation: Investors seeking robust mid-cycle exposure can consider staged accumulation, leveraging any price consolidation to build positions while targeting ongoing operational milestones (new product launches, client traction).
• Long-Term Growth Holding: For long-horizon investors, Cloudflare’s entrenched market leadership, anticipated margin expansion, and secular growth tailwinds suggest that buying on technical weakness or following positive earnings could lock in significant capital gains as cloud security and AI further proliferate.

Is it the Right Time to Buy Cloudflare?

In summation, Cloudflare’s current positioning is underpinned by a rare combination of triple-digit revenue growth, unmatched innovation in digital security and networking, and expanding global franchise. The stock’s powerful technical structure, premium but rational valuation, and multiple positive secular drivers highlight a compelling scenario—even more so as the global tech rally continues to re-rate digital infrastructure leaders. While prudent risk management remains essential—given volatility and the absence of profitability—the balance of evidence points to Cloudflare as a high-conviction candidate for portfolios focused on growth, innovation, and long-term technology disruption.

For those seeking to gain exposure to the next wave of digital infrastructure and security champions, Cloudflare’s combination of strategic momentum, financial performance, and sector tailwinds suggests it may be entering a new, sustainable bullish phase. The stock’s upcoming earnings and ongoing client wins could represent key inflection points—worthy of serious consideration for NZ investors looking to capture the upside of global technology megatrends.

Cloudflare’s multi-year trajectory, unrivalled innovation engine, and surging enterprise adoption all reinforce its profile as a standout opportunity within the ever-evolving cloud security and infrastructure sector.

How to buy Cloudflare stock in New Zealand?

Buying Cloudflare (NET) shares online is now both simple and secure for New Zealand investors, thanks to regulated brokers that offer intuitive digital platforms. You can invest in Cloudflare stock either through traditional “spot buying” – owning real shares – or by trading Contracts for Difference (CFDs) to speculate on price movements without holding the underlying asset. Each method has unique advantages and cost structures. To choose the best option for your needs, it’s important to review the comparative table of brokers and associated fees found further down this page.

Spot Buying

Spot buying means purchasing real Cloudflare shares, making you a direct shareholder. This classic approach enables you to benefit from any capital gains if the stock price rises (or bear losses if it falls). For Kiwis, most brokers charge a fixed commission per order, typically around NZD $5-15 when buying U.S. shares, and orders are filled at the prevailing market price.

Informations importantes

Example: If Cloudflare is trading at USD $164.16 per share (approx. NZD $272, exchange rate 1 USD = 1.66 NZD) and you invest NZD $1,000 (about USD $602), you could buy around 3 shares (NZD $816), plus a typical NZD $5 brokerage fee.
✔️ Gain scenario: If the share price rises by 10%, your 3 shares are now worth about NZD $897.60.
Result: That’s a gross gain of NZD $81.60 (+10%) on your investment, before fees and exchange charges.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Cloudflare’s share price without actually owning the shares. You can go “long” (if you expect the price to rise) or “short” (if you expect a decline), and CFDs provide access to leverage, multiplying your market exposure. Fees typically include a spread (the gap between buy and sell prices) plus daily overnight financing if you hold positions beyond the trading day.

Informations importantes

Example: You open a CFD on Cloudflare with an NZD $1,000 stake and use 5x leverage, gaining exposure to NZD $5,000 worth of shares.
✔️ Gain scenario: If Cloudflare’s price rises by 8%, your position value increases by 8% x 5 = 40%.
Result: That’s a NZD $400 gross gain on your $1,000 margin (excluding spreads and overnight fees).

Final Advice

Whether you prefer to own Cloudflare shares directly or trade their price via CFDs, always compare broker fees, commission structures, and platform features before investing. The right method depends entirely on your financial goals, risk tolerance, and investment horizon. To help you make an informed decision, a detailed broker comparison is available further down this page. Happy investing!

Our 7 tips for buying Cloudflare stock

The latest news about Cloudflare

Cloudflare stock has risen 4.32% over the past five trading days, outperforming key benchmarks. This strong short-term performance comes amid broader tech sector strength and increased interest in cloud security services, with particular interest from institutional investors seeking exposure to global digital infrastructure. The relevance for NZ-based stakeholders is underlined by the growing adoption of cloud security and content delivery networks that enable local enterprises to scale digital operations securely and reliably.

The company signed a record $100 million enterprise contract, indicating robust demand from large-scale customers. Such a significant deal further consolidates Cloudflare’s position as a trusted partner, particularly relevant for multinational enterprises with NZ operations or regional data sovereignty requirements. This traction in the high-value enterprise segment supports perceptions of long-term stability and service reliability, both critical factors for listed tech stocks in NZ institutional portfolios.

Cloudflare’s Q1 2025 revenue reached $479.1 million (+27% YoY), exceeding analyst consensus by 2.1% and supporting global growth momentum. The quarterly results also featured a gross margin surpassing long-term targets, highlighting operational efficiency and a scalable business model. While the company remains non-profitable, sustained double-digit sales growth demonstrates ongoing demand across developed markets, including Asia Pacific, with NZ businesses among those benefiting from Cloudflare’s integrated security and network solutions.

Cloudflare powers 80% of AI startups and targets 25% growth in its enterprise segment for 2025. Its infrastructure underpins a majority of emerging AI projects and is increasingly essential for NZ firms developing or adopting AI-driven products. Continued innovation and market leadership in cloud security and content delivery position Cloudflare as a preferred vendor for high-growth technology-driven organizations in New Zealand, bolstering the appeal of NET shares for regional investors seeking exposure to global AI adoption trends.

The company has recently expanded its presence in EMEA and maintains a global network architecture that benefits NZ users through enhanced latency and cybersecurity. Cloudflare’s ongoing international expansion includes infrastructure updates that strengthen its content delivery and data protection capabilities from New Zealand to Europe. This global footprint is particularly notable for NZ corporates and digital platforms that require real-time, secure connectivity to offshore users and partners, aligning NET stock with NZ’s push for resilient, future-ready cloud infrastructure solutions.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.