Schaeffer's Top Stock Picks for '25

Why Cloudflare Stock Could Keep Churning Higher

Friday's earnings report sent NET to near 2-year highs

Deputy Editor
Feb 12, 2024 at 11:59 AM
facebook X logo linkedin


Cloudflare Inc (NYSE:NET) is marginally higher today, last seen trading at $108.10. Shares of the cloud services provider soared to a nearly two-year high on Friday, touching an intraday high of $116 after the company reported a much better-than-expected fourth quarter. With help from a historically bullish signal now flashing, NET could have just what it needs to keep charging higher, too.

NET Chart February 122024

Digging deeper, Cloudflare stock's latest peak comes amid historically low implied volatility (IV). This has been a bullish combination in the past, according to Schaeffer's Quantitative Analyst Rocky White. White's data points to six other signals in the past five years when NET was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower.
 
This is currently the case with the stock's SVI of 46%, which stands in the 16th percentile of annual readings. The shares were higher one month later after 83% of those signals, averaging an 11.17% rise. From its current level, a move of similar magnitude would place Cloudflare stock above $120.
 

Analysts have yet to weigh in on the equity, but the majority of pessimistic. Of the 28 in coverage, 17 recommend a tepid "hold" or worse, and a shift in sentiment could bode well for the shares.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter