Jim Cramer on Cloudflare: “They’re a Terrific Cyber Defender”

Cloudflare, Inc. (NYSE:NET) was among the stocks on Jim Cramer’s radar on Mad Money as he discussed the upcoming earnings. Cramer mentioned the stock during the episode and said:

After the close, there’s another consistent winner reporting, Cloudflare. This company does a lot of things with content online, but what I like best is how Cloudflare keeps websites from being pilfered by the big hyperscalers. They’re a terrific cyber defender.

Photo by Joshua Mayo on Unsplash

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. During the March 3 episode, Cramer noted that “it has fabulous growth,” as he commented:

Can any enterprise software stock escape that gravitational pull of a market that dislikes the entire group? If there were, it would look like something called Cloudflare, an internet infrastructure play with a cybersecurity kicker. This is not something that can easily be replaced by some piece of code written by the AI platforms. But somehow, that still hasn’t saved the stock. When Cloudflare reported three weeks ago, it delivered a top and bottom-line beat… In response, the stock popped 5%… but then it drifted down, and it’s now down 31% from its high four months ago. Stock is pretty expensive on a price-to-earnings basis. Then again, it’s holding up much better than many of its other rivals because it has fabulous growth.

While we acknowledge the risk and potential of NET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NET and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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