Cloudflare $NET Q1 FY12/23 Earnings Review

Actual earnings: fine. Stock response: biohazardous Dumpster fire. We added in staff personal accounts.

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May Age Badly, Bullish Anyway

You can send us this note in a year or so if the opinion proves to be nonsense.  But our call right now is that NET just presented a compelling buying opportunity, dropping 25% on an earnings print that missed by a whisker.

The company - which if you're new to the name provides distributed application & content hosting plus zero-trust security services - is delivering solid growth rates and is probably no more than 3-4 quarters away from being TTM unlevered pretax FCF positive.  If and when that happens that is usually a major catalyst for high beta software names like this one.