In this article, we discuss 5 best cybersecurity stocks to buy now. If you want to read a detailed analysis of the cybersecurity market, go directly to 12 Best Cybersecurity Stocks to Buy Now.
5. Cloudflare, Inc. (NYSE:NET)
Market cap as of August 15: $25.568 billion
Cloudflare, Inc. (NYSE:NET) is an American information and communications technology company that primarily focuses on content delivery networks and DDoS mitigation.
On August 5, Cloudflare, Inc. (NYSE:NET)’s revenue surged by 54% on a YoY basis to $234.5 million, outperforming the estimates by $7.1 million. This marked the 8th consecutive quarter for over 50% revenue growth. Since Q2 2021, the dollar-based retention rate of the company has stayed above 120% and for Q2 2022, it was at 126%.
RBC Capital analyst Matthew Hedberg on August 5 maintained an Outperform rating on Cloudflare, Inc. (NYSE:NET) and raised the price target to $74 from $62. The analyst told investors that the company reported another “strong” quarter with no sequential deceleration in revenue growth despite the tough macro environment. He further added the company’s record customer additions and gross renewal rate across all regions.
Here is what Baron Funds had to say about Cloudflare, Inc. (NYSE:NET) in its Q1 2022 investor letter:
“Cloudflare, Inc., another new purchase during the quarter, is a web infrastructure and website security provider. Cloudflare disrupts legacy networking vendors by enabling customers to rent their network solutions in the cloud (and pay for usage) instead of buying firewalls, load balancers and secure web gateway devices. Using a global network in over 100 countries, Cloudflare delivers content and security within 50 milliseconds of 95% of the internet-connected population in the world. Shares contributed 12bps to results on impressive fourth quarter earnings as it continues to successfully layer high-value services such as zero trust, network services, and edge programmability on top of its modern global network. The company is attracting a broader set of investors as Cloudflare now matches durable 50%-plus top-line growth (this was the fifth straight quarter of 50%-plus revenue growth, and 56% current bookings growth suggests strong durability into 2022) with positive operating margins and break-even free cash flow. We believe that Cloudflare will benefit from long-duration of growth disrupting a $100 billion addressable market across application services, network services, and zero-trust services.”