12. Cloudflare Inc. (NYSE:NET)
Number of Hedge Fund Holdings in Q4 2025: 70
Cybersecurity services provider Cloudflare Inc. (NYSE:NET)’s shares are up by 24% over the past year and are down by 4.7% year-to-date. May 8th was an eventful day for the firm as the shares closed a whopping 23.6% lower. The dip occurred after the firm reported its fiscal first quarter earnings report, which saw Cloudflare Inc. (NYSE:NET)’s $0.25 in earnings and $640 million in revenue beat analyst estimates. However, the firm also announced in a blog post that it was cutting headcount by 1,100 workers and explained that efficiencies stemming from agentic artificial intelligence use were driving efficiency up. Cramer discussed the headcount reduction and its impact on Cloudflare Inc. (NYSE:NET)’s share price performance:
“I’ll give you Cloudflare then, how about that, you like that? Cloudflare. . .he’s [CEO] talking about how he’s looked it over, he’s looked at what AI can do, he realized that there’s some people who may not be as valuable. AI could do a lot more. Look he’s a very good businessperson. . .it read a little ill advised in the way that Mathew wrote it. Which was like, we had the best quarter. . .but we have to let people off. We’re used to laying people off when things are troubled, now we’re laying people off when things are good.”
“But you know that a layoff by Mathew Prince, who’s a very serious practitioner of the game, says, look we’re gonna make even more money than you want. And yet it’s greeted, as if he’s not doing well. He is doing well and the letter’s right.”
Vision Capital Fund discussed Cloudflare, Inc. (NYSE:NET) in its third quarter 2025 investor letter:
“Separately, we added a new position in Cloudflare Inc (NYSE: NET) in September (see memo). Cloudflare is the dominant connectivity cloud offering networking and security software as a service (SaaS). Cloudflare offers over 60 products that enable businesses to connect and protect external-facing and internal systems across application services, network services, and zero-trust services, which its customers increasingly want to consolidate.
Cloudflare’s reverse proxy service is used by 80% of websites, and 20% of the internet goes through it. Today, more websites are using Cloudflare than all traditional CDNs combined (24.5% for web servers and 14.7% for DNS servers). It is Cloudflare’s reverse proxy that allows it to sit in front of its customers’ web servers, allowing it to provide a wide and growing range of services that increase the security, performance, and reliability of its customers…” (Click here to read the full text)
