AI Stock Cloudflare Offers Buy Point After 19% Rise Here’s where to buy.

Tuesday’s IBD 50 Stocks to Watch Pick, Artificial Intelligence Leader Cloudflare (NET), introducing a new point of purchase. This makes Cloudflare one of the best AI stocks to watch right now. Shares fell about 4 percent Tuesday afternoon amid overall weakness in the stock market.




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Cloudflare works to accelerate and provide security to web applications routed through its intelligent global network. The company has added web infrastructure to handle rapidly emerging artificial intelligence apps.

William Blair analyst Jonathan Howe said in a note to clients, “We believe the company has moved past implementation issues and is gaining faster-than-expected traction in the zero-trust and SASE cybersecurity markets. ” “We believe key trends in cybersecurity, AI, and edge (computing) can be meaningful drivers of future growth as Cloudflare positions itself as a key enabler.”

Secure Access Service Edge, or SASE, offers a fast and affordable way to secure an organization’s branch offices and remote workers.

In late September, Cloudflare announced its “Workers AI” platform. It allows users to run machine learning models on the Cloudflare network from your own code.

On February 8, Cloudflare earned 15 cents per share, up 150% from 6 cents a year earlier. Revenue rose 32 percent to $362.5 million. In response, shares rose more than 19 percent, touching new highs.

“We had an exceptionally strong fourth quarter,” Chief Executive Matthew Prince said in a news release. “We grew revenue 32% year-over-year to $362.5 million, blew away our previous records for new ACV (annual contract value) – delivering the highest quarterly growth since 2021 – and all of our Signed both the largest new customer win and the largest customer renewal ever.”

AI Stock Eyes Buy Trigger

After big gains since early November, AI stock is nearing a 102.30 buy point in a tight three-week pattern, according to IBD MarketSurge chart analysis. Clearing the buy point on heavy volume can give investors an opportunity to pick up shares.

A three-week tight is a constructive trading pattern that shows demand for big money. Despite big gains in recent weeks, institutions are unwilling to part with their shares.

Amid big price gains, AI stock boasts a strong 96 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. This makes Cloudflare one of the best AI stocks to watch.

On another bullish note, the stock’s relative strength line hit new highs in February. This is a sign of strong stock market performance. Remember, the RS line measures a stock’s price performance versus the S&P 500 and is the blue line plotted on IBD charts.

Best stocks to buy and watch

Three recent IBD 50 Growth Stocks to Watch picks are among the best stocks to buy and watch.

Source: IBD data as of February 28, 2024

Follow Scott Leihtnen on Twitter. @IBD_SLehtonen For more information on the best stocks to buy and watch and the stock market.

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