Cathie Wood is Buying These 5 Stocks on the Dip

3. Cloudfare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 41    

Percentage Increase in Stake During Q2 2022: 33% 

Loss in Share Price Year-to-Date as of September 21: 51%

Cloudfare, Inc. (NYSE:NET) operates as a cloud services provider that delivers a range of services to businesses worldwide. According to regulatory filings, ARK Investment Management owned 324,635 shares in Cloudflare, Inc. (NYSE:NET) at the end of June 2022 worth $18 million, representing 0.10% of the portfolio.

On September 8, Cantor Fitzgerald analyst Jonathan Ruykhaver initiated coverage of Cloudflare, Inc. (NYSE:NET) stock with a Neutral rating and a price target of $65, noting that the firm was a disruptor in the networking and security markets. 

At the end of the second quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $541 million in Cloudfare, Inc. (NYSE:NET), compared to 44 in the previous quarter worth $1.2 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Cloudfare, Inc. (NYSE:NET) was one of them. Here is what the fund said:

“Despite posting solid quarterly results with 54% revenue growth, and a record addition of 14,000 customers, shares of Cloudflare, Inc. (NYSE:NET), a software infrastructure provider, declined 63% in the quarter along with other fast-growing names in the software universe that penalize current profitability by reinvesting back in their businesses. We believe Cloudflare’s disruptive global platform and unmatched pace of innovation will enable the company to continue to take share across multiple large addressable markets for years to come.”