Cloudflare, Inc. (NET) Stock Analysis

Cloudflare’s principal competitive advantage is its global, programmable network, which now spans over 335 cities in 125+ countries and reaches 95% of the world’s internet-connected population within 50 milliseconds. This scale enables Cloudflare to deliver security, performance, and reliability at a level few can match. For example, Cloudflare blocks over 190 billion cyber threats daily and is recognized for best-in-class DDoS mitigation—so much so that even major cloud providers sometimes refer customers to Cloudflare for protection.

Unlike hyperscale rivals such as AWS, Microsoft Azure, and Google Cloud, Cloudflare’s architecture is unified: every server runs every service, allowing rapid deployment of new features and efficient resource utilization. This results in higher GPU utilization for AI workloads (often 3–6x that of public cloud peers), enabling lower costs and faster inference at the edge.

Cloudflare’s ease of use and integrated platform—spanning application security, zero trust, developer tools, and content delivery—drives customer stickiness and cross-sell. The company’s “connectivity cloud” approach appeals to enterprises seeking to consolidate vendors and simplify IT stacks.

Customer satisfaction is reflected in strong net retention (111% in Q2 2025) and rapid growth in large customers (3,712 with >$100k annualized revenue, up 22% YoY). While competitors like Akamai and AWS have scale, Cloudflare’s pace of innovation, developer-centric culture, and global reach provide a durable edge.