11 Hot Software Stocks to Buy Now

6. Cloudflare, Inc. (NYSE:NET)

6-Month Share Price Gain: 22.77%   

Number of Hedge Fund Holders: 65

Cloudflare, Inc. (NYSE:NET) is included in our list of the 11 Hot Software Stocks to Buy Now.

On August 1, 2025, Scotiabank raised its price target on Cloudflare, Inc. (NYSE:NET) from $135 to $200, maintaining a ‘Sector Perform’ rating. This price revision came a day after the company reported its second-quarter results.

For Q2, Cloudflare, Inc. (NYSE:NET) reported annualized revenue of over $2 billion with 28% YoY growth. Its revenue reached $512.3 million, which exceeded expectations. Furthermore, its non-GAAP operating income reached $72.3 million, bringing the margin to 14.1%.

Cloudflare, Inc. (NYSE:NET)’s leadership cited stronger demand, larger and longer-term deals, and strategic wins in AI-driven content creator solutions. The company is well-positioned to capitalize on the emerging ‘agentic web,’ a new phase of the internet marked by autonomous, goal-driven interactions.

With gross margins of 76.3%, Cloudflare, Inc. (NYSE:NET) closed the quarter with approximately $4 billion in cash. Looking ahead, it expects FY25 revenue of $2.113-$2.116 billion and Q3 revenue of $544.5 million on the higher side.

With its vast connectivity cloud platform, Cloudflare, Inc. (NYSE:NET) delivers cloud-based networking, security, and performance solutions. It is included in our list of the hot stocks to buy.