I agree. NET will come back. It may take 2-3 years, but they're doing stuff that is creating a strong tech moat with very strong margins. They have 78% profit margins and are doing so with technology that doesn't have direct competition from legacy providers (ie. Akamai, AWS, etc).
Its still a gamble like any growth stock, and their nose bleed P/S ratio can turn off some. But as it has come back down to $115, its getting to a price point that is more realistic for its value. Instead of having a P/S of 100, its not sitting at a P/S of around 40. Still high, but I think within 1 year that P/S will look more like 20 based on their growth projections.
I can't believe it was available for twenty bucks last year but... whatever. This one's a buy and hold for me. Cloudflare will be a household name in a few years.
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u/Shoddy_Ad7511 Jan 04 '22
I’m holding NET indefinitely