Cloudflare buy zone and target after earnings

Cloudflare earnings

1. Revenue growth: +48% yoy
Margins: 75,8%
EPS: -0.3 vs estsimates -0.6, 100% surprise

2. Annual Client Net Retention: 115%
3. Cash on balance sheet: 2,74 years
4. Spending efficiency (growth to cash spend): 0,87x

Source: cloudflare.net/news/news-details/2020/Cloudflare-Announces-Second-Quarter-2020-Financial-Results/default.aspx… 2/3 NET.

Trend continues w CAGR of 50% and high margins. Company delivering on both soft and hard fronts.
Cloudflare Workers up 440%. CEO M. Prince describes how savvy Amazon Web Services customers move to Cloudflares services.

Short term target: 50 USD

GRIT Score anlyses for Q2: 5,24 to 7,77* . (Growth + Retention + In the bank + Targeted Spend ). Where 3-4 is good, 4-6 is better and >6 is best.

*I usually use total cost here vs cost of revenue. The latter of course gives a higher Grit score.

交易進行

Waiting for volume supporting a buy signal. I can't really see one yet.

註釋

Lots of insider selling in the recent weeks has held the stock price down. The owners and other insiders are still heavily invested so I think the selling actually was in good timing coming with a very strong earnings report. I think we've had a breather and we soon may continue towards target of 45-50.

交易結束：達到停損點

Fundamentals are strong but technicals clearly show a negative trend in the short term trading in a down channel towards 30.

交易進行

New product Cloudflare One and new partnerships on the platforrm with Crowdstrike, VMware, Ping Identity, SentinelOne, Tanium and Firemon.

Cloudflare One is a scalable solution for securing distributed teams. The team behind Cloudflare are once again showing up as the true innovators in cloud computing. Fantastic culture leadership and company.

Target of 50 reached and beyond. This new product offering adds value to the company. It will be interesting going into earnings on november 5th.

Product announcement finance.yahoo.com/news/cloudflare-announces-cloudflare-one-platform-130000846.html