5 Hot Growth Stocks To Buy Now

4. Cloudflare, Inc. (NYSE:NET)

Revenue Growth Rate over Last 12 Months: 51.87%
3 months return: 47.25%
Number of Hedge Fund Holders: 53

Cloudflare, Inc. (NYSE:NET) offers an expanding set of application, network, and security services that help to expedite and safeguard mission-critical software and infrastructure. The company’s variety of products and services make it the ideal option for companies wishing to improve the performance, dependability, and security of their website. Many websites employ Cloudflare’s security defences against DDoS assaults and Content Delivery Network (or CDN) to guarantee quick loading times, which are crucial for SEO.

Although facing economic challenges, Cloudflare, Inc. (NYSE:NET) produced a stellar third-quarter earnings report. Its client base increased by 18% to 156,000, and over the previous year, the typical consumer spent 24% more money. The result was a 47% rise in revenue to $254 million. Regarding the future, Cloudflare, Inc. (NYSE:NET) is well-positioned to keep up with or even pick up speed. More than 20% of the internet uses at least one Cloudflare service, yet the business has just 1% of the $125 billion addressable market.

Cloudflare, Inc. (NYSE:NET) is also getting the attention of the smart money, as 53 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the third quarter, up from 41 funds a quarter earlier. Catherine D. Wood’s ARK Investment Management is the leading shareholder of the company with 294,962 shares of Cloudflare, Inc. (NYSE:NET), worth over $13.34 billion.

Here is what Baron Funds had to say about Cloudflare, Inc. (NYSE:NET) in its third-quarter 2022 investor letter:

“We continued to build our position in Cloudflare, Inc. (NYSE:NET) during the quarter as the shares declined with the overall software space and the long-term risk/ reward balance became more compelling. The company reported a strong second quarter, with revenue growth accelerating to 54%, as well as better gross and operating margins. Third quarter guidance was also ahead of Wall Street expectations …… (Click here to read the full text).”