Really solid trading week concluded last night with early signs that some of those more aggressive growth stocks might be entering buying territory again. Yesterday we saw $V (Visa) bounce following some encouraging earnings released the day before. $META (Meta Platforms Inc) continued upward along with $NVDA (NVIDIA Corporation) (two stocks that were obliterated in Y2022.
In the growth stock department $NET (Cloudflare) took off after having a torrid 2022. This company is in its infancy but I have long been a fan of the technology that they are developing and their business model, which relies on giving away a lot of tech and locking businesses in based on value. Unlike other large players in this space Cloudflare has a free entry level product that offers far more than its competitors.
In the past year or so we have seen a steep incline in ransomware attacks, bots, scams, spyware with a lot of the focus for hackers moving away from personal windows computers to hosted software, websites & common platforms like wordpress, joomla, microsoft exchange and others where the rewards of breaking in are greater.
In a fairly short space of time Cloudflare has become an essential component for a professional website with serious traffic. It is steadily taking over the medium business to small enterprise segment, losing out only to smaller SME sites hosted on low cost shared hosting packages and massive enterprise deployments that likely favor Akamai Edge $AKAM (Akamai Technologies) or Amazon Cloudfront for better content caching performance on a global level. It is worth noting that both of these alternatives are significantly more expensive, and well established and their focus is less on security and more on content delivery.
Over the next 5 years I am fairly excited about the growth potential of Cloudflare, and as a growth stock it remains one of my top picks. $NSDQ100