Analyst Note
| Brian Colello, CPA |Narrow-moat Cloudflare reported a strong second quarter, with results above consensus expectations for both top and bottom line. We remain confident in Cloudflare’s strong foothold within the cybersecurity space and believe the firm has much to gain from growth in edge computing. We are also impressed by Cloudflare’s flexibility in adapting to the turbulent macro environment and view adjustments to the full-year outlook as appropriate. With this, we are maintaining our fair value estimate of $82 per share. Shares rose as much as 21% after hours, but we still view the stock as attractive.