Cloudflare Inc. (NET) provides cloud-based network services that protect Internet apps and help them run faster – without requiring clients to add hardware, install new software, or change code. After a small flag, NET broke sharply higher on Feb. 7 with massive volume after the company reported results, highlights John Eade, president of Argus Research.
NET has been on a wild ride since its 2019 IPO at $15. The stock drifted sideways until after the pandemic and then had a huge run to $217 by November 2021. After that, the shares were slammed, falling to $38 in both 2022 and 2023. NET traced out a base from May 2022 until late 2023, hitting recovery highs in February.
Data by YCharts
The stock slid back into the summer of 2024 and then exploded in November from $86. The shares peaked in December at $118, traced out a flag, and took off to $140 by the end of January. The stock peaked on Feb. 13 at $177 and then dropped back to its 200-day moving average. But it has since bounced sharply off that support.
We would put a stop-loss just below chart support at $142. We would take profits at $175, with greater long-term gains possible.
