Why Cloudflare Stock Popped on Tuesday
BofA loves Cloudflare stock, but valuation still matters.
Cloudflare (NYSE: NET) stock surged 4.5% through 10:10 a.m. ET Tuesday after analysts at Bank of America double-upgraded the stock from underperform (i.e., sell) to buy, as Street Insider reported this morning.
Curiously, BofA upgraded Cloudflare, which is often thought of primarily as a cybersecurity stock, for another reason entirely: BofA likes Cloudflare's artificial intelligence (AI) business.
Cloudflare doesn't break its business out among separate segments when reporting earnings. As a result, historically, many investors have considered the company a cybersecurity stock -- which is no surprise. Street Insider notes the company's security products already have 33% market penetration.
