Signage is displayed outside the Cloudflare Inc. headquarters in San Francisco, California, U.S., on Thursday, Aug. 15, 2019. Cloudflare, a firm that helps websites protect and distribute content, warned potential investors in its initial public offering that risks to its business go beyond the boilerplate Silicon Valley advisory that it may never become profitable. Photographer: Michael Short/Bloomberg
Boardroom Talk
Boardroom Talk: Cloudflare’s 24% surge illustrates profit potential for buyers of neglected stars
Cloudflare has been on the slide all of this year reflecting the market’s indiscriminate selloff of exponentially growing businesses.
Thursday's release of the US's October inflation figure was a genuinely positive surprise. Even though the headline number only came in two pips below the 7.9% expected, Mr Market assumed manic mode. Strong buying of tech stocks drove the Nasdaq 100 index a staggering 7.5% higher – something that's happened only five times in the past 20 years.
Among the biggest winners was one of my favourite stocks, internet security multinational Cloudflare, which rose 24% having a drop into the $30s for the first time since depths of the lockdown in 2020. As the graph above shows, Cloudflare has been on the slide all of this year reflecting the market's indiscriminate selloff of exponentially growing businesses.
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