5 Stocks That Will Double In 2023

In this article, we will discuss 5 stocks that will double in 2023. If you want to explore similar stocks with promising upside potential, you can also read 15 Stocks That Will Double In 2023.

5. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 41

Cloudflare, Inc. (NYSE:NET) is a leading provider of cloud services and applications for businesses worldwide. On November 3, the company posted earnings for the fiscal third quarter of 2022. The company reported an EPS of $0.06 and outperformed expectations by $0.06. The company generated a revenue of $253.86 million, up 47.29% year over year, and beat estimates by $4.06 million. Cloudflare, Inc. (NYSE:NET) has a diversified business model with exposure to various high-growth areas including content delivery network (CDN), edge computing, and security. The company has a strong competitive position in the CDN market with its robust global network and innovative technology and is well-positioned to benefit from the growing trend of edge computing as its platform is well-suited for this new paradigm. Cloudflare, Inc. (NYSE:NET) is ranked high among the stocks that will double by 2023.

This November, Baird analyst Shrenik Kothari updated his price target on Cloudflare, Inc. (NYSE:NET) to $67 from $80 and maintained an Outperform rating on the shares.

At the end of Q2 2022, 41 hedge funds held stakes in Cloudflare, Inc. (NYSE:NET). The total value of these stakes amounted to $541 million. As of June 30, Two Sigma Advisors is the largest shareholder in Cloudflare, Inc. (NYSE:NET) and has disclosed a position worth $103.7 million in the company.

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. Given Cloudflare’s proprietary network and massive global scale, its software products have a disruptive price-performance advantage over competitors. As the company introduces new products as well as disruptive packaging/pricing, its unit level economics should continue to improve over time, with the company already well ahead of its long-term gross margin target of 74%, reporting 78.9% for the second quarter. This drives strong cross/upselling activity with customers, reflected in strong net-dollar expansion rates in excess of 125%. Indeed, in the most recent quarters, customers purchasing five or more products reached 81% of the base, six or more products reached 70% of the base, and seven or more products reached 58% of the base. Enterprise penetration continues to be a key long-term driver, with 1,749 customers now spending over $100,000 annually with the company, growing 61% and now accounting for over 60% of total revenue. With approximately 152,000 paying customers at the end of last quarter, large enterprise customers still represent just 1% of total paid customers and thus a material growth opportunity in the coming years. We continue to have high confidence in the company’s ability to innovate at a rapid pace (announced 20 new products or enhancements in September alone), package and bundle with disruptive pricing, and take material share in its large and growing addressable markets.”