Jim Cramer on Cloudflare: “Look at the Longer-Term Direction Because It’s Pretty Fabulous”

Cloudflare, Inc. (NYSE:NET) was among the stocks Jim Cramer commented on, saying that tech stocks cannot be trusted to lead anymore. Cramer highlighted the stock’s erratic movement, as he commented:

Well, it’s been a whirlwind few weeks for Cloudflare, the internet infrastructure play with a major cybersecurity business. When the company reported in early May, the numbers were excellent. It was a textbook beat-and-raise quarter, but they also announced some big layoffs, amounting to roughly 20% of the workforce. It was done sadly, but they had to do it… Stock’s sold off hard, down over 27% in a three-day losing streak thereafter, the quarter. Then it snapped right back.

I would argue it should never have been down. By last week, Cloudflare was setting fresh all-time highs. But with the tech-led sell-off that started last Friday, it’s now getting hit again, down almost 15% from its highs. This stuff is very hard to keep track of. Today, Cloudflare held a very successful investor day event here at the New York Stock Exchange… Don’t look at the ups and downs; look at the longer-term direction because it’s pretty fabulous.

A stock market graph. Photo by energepic.com

Cloudflare, Inc. (NYSE:NET) provides cloud-based security, performance, and networking solutions for businesses, including website protection, Zero Trust security, content delivery, and developer tools.

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