Cloudflare, Inc. (NYSE:NET) is included in our list of the 11 Hot Software Stocks to Buy Now.
A close-up of a hand tapping away at a keyboard, using the company’s software to carry out a transaction.
On August 1, 2025, Scotiabank raised its price target on Cloudflare, Inc. 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. 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.’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. 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. delivers cloud-based networking, security, and performance solutions. It is included in our list of the hot stocks to buy.
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