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For Your Education and Enjoyment Cloudflare Just Broke the Internet, But It's Still a Red-Hot BuyWritten by Sam Quirke. Published 11/21/2025. 
Key Points - Shares of Cloudflare sold off on Tuesday, Nov. 18, after a global outage shook the internet.
- However, strong fundamentals and consistent analyst support still point to long-term upside.
- This week’s panic may actually be setting up a buy-the-dip opportunity.
Tech giant Cloudflare Inc. (NYSE: NET) was at the center of a global outage on Tuesday, Nov. 18, when many of the world's largest companies and most-used websites went offline. OpenAI's ChatGPT, Shopify and other major platforms were affected, a reminder of how central certain networks have become to the functioning of the modern internet. Unsurprisingly, the market's response was severe. Cloudflare shares dropped nearly 8% on the day, extending a sell-off that began in early November and had already taken the stock down nearly 30% in a few weeks. After a run that pushed Cloudflare to all-time highs in late October, the reversal was particularly sharp. But while the headlines focused on the outage, the fundamentals tell a different story. Discover the 10 Best AI Stocks to Buy Now!
The AI revolution is reshaping the investment landscape, and knowing where to place your bets is crucial. Our free report reveals the 10 top AI stocks that should be on your radar right now. Don't miss your chance to get in on these high-potential tech plays. Download your free report today. Cloudflare remains one of the most important infrastructure companies in tech, and its long-term trajectory appears intact. The sell-off could be an overreaction — and it may present investors with an unexpected entry point into a company that has been leading innovation at the edge of the internet for years. Strong Fundamentals Still Define Cloudflare's Story Tuesday's outage overshadowed a stellar run of results. In late October, Cloudflare reported another strong quarter of double-digit growth, with revenue up roughly 30% year-over-year and earnings beating expectations. The company came close to breaking even, a notable milestone for a high-growth software company that continues to scale aggressively. Forward guidance was also upbeat, with management forecasting continued acceleration into next year. CEO Matthew Prince emphasized that the company is "shipping capabilities at an unmatched pace," and that its expanding platform is building "the rails for the next decade of Internet growth." That confidence is grounded in execution: Cloudflare's network spans hundreds of cities, serves millions of websites, and secures traffic for many of the world's largest enterprises. In short, the company is growing rapidly, approaching sustained profitability, and widening its moat in cybersecurity and performance optimization. A single outage hurts, but it doesn't alter the longer-term trajectory. If anything, it highlights how integral Cloudflare has become to keeping the internet online. Analysts Are Standing Firm on Cloudflare Wall Street appears to agree. Even before the outage, the stock was attracting bullish coverage from top firms. Oppenheimer reiterated its Outperform rating last week, while Argus maintained a Buy rating and raised its price target to $265, implying roughly 40% upside from then-current levels. Even after Tuesday's drop, analysts largely held their ground. Bank of America characterized the incident as potentially damaging to reputation but not structurally harmful, noting the underlying business remains healthy. Those views matter because Cloudflare's investment case is driven by opportunity, scale and execution. The company sits at the intersection of cloud computing, cybersecurity and edge networking — three of the most important growth areas in global tech. Customer retention is strong, the developer ecosystem continues to expand, and AI-enabled network services are gaining traction with enterprise clients. Risks and What To Expect Next for NET Stock That said, the bulls don't get a free pass. The stock's valuation remains lofty relative to peers, and investors have long paid a premium for Cloudflare's growth. That leaves the company little room for error if growth or margins were to slow. Confidence could be tested if the outage proves to be more than a one-off. Major enterprise clients may hesitate before moving new workloads to a platform that recently suffered a global outage, and competitors will likely use the event to their advantage. Combine that with a broader market that is becoming more risk-averse as tech valuations cool, and it's easy to see why some investors might prefer to wait. However, those short-term concerns miss the bigger picture. If the stock can consolidate above Tuesday's low near $188, it should be positioned to mount a recovery rally into the end of the year.
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