Cloudfllare Inc, the producer of DDoS attacks mitigation software and cloud based IT security applications producer is currently valued at 25.73 bln. USD after almost doubling in value in the space of a month after excellent quarterly earnings report.
I estimate Cloudflare at 25.73 billion USD market capitalisation currently is fully valued on an intrinsic basis.
If two events simultaneously unfold, Cloudflare could reach a market capitalisation of 100 billion USD.
1) Cloudflare's quarterly revenue goes on growing at more than 50 % year on year.
2) A regime change ensues on the stock market. The positivity could be brought by either the Federal Reserve pausing the federal funds rate hikes or economic growth resuming driven by either a technology breakthrough or global cooperation.
In short, as with most growth stocks from Technology or Pharmaceuticals the future for Cloudflare is binary.
A third, negative scenario is unlikely at the moment, since computing is moving to the cloud. Altogether.
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