Cloudflare’s (NYSE: NET) biggest problem in 2024 is its stock price valuation. Trading well over 100X earnings, the market is pricing in significant growth, implying a 4X gain in earnings, but the concerns will disappear in 2025. The company continues to build leverage despite macroeconomic headwinds, and headwinds are expected to revert to tailwinds in 2025, so it will likely grow earnings faster than expected over the longer term.
As it is, the analysts' consensus outlook is robust and forecasts adjusted EPS to more than quadruple in the next four years.
