Cloudflare (NET) Stock May Trade At A Rich Sales Premium

Cloudflare’s stock has surged over the past few years as investors have latched onto its role in web security and edge computing. With the shares now around US$303.61, the open question is whether that price tag is still supported by its sales base. Cloudflare has delivered a very large 3 year share price gain of about 4.5x, which makes the gap between its long term share performance and its underlying revenue scale an important issue to examine. The company’s rapid response to the PHP2Shell...