Here's Why Cloudflare Stock Rose 24% in August
Shares of Cloudflare (NYSE: NET) jumped 24% in August after it published impressive quarterly earnings. A sell-off in growth stocks forced the cybersecurity leader to lose some of those gains later in the month, but it still posted a solid return for shareholders.
While some tech stocks reported weakness in August, Cloudflare was one of the bright spots. The company maintained a high growth rate, notching 54% revenue expansion over the prior year. It also revised full-year guidance upwards, increasing its top-line forecast by $13 million and operating income by $3 million.
Investors are looking for suitable options as economic activity slows and interest rates rise, and growth stocks are getting hit the hardest. That's exactly why Cloudflare stands out so much. The company is delivering on several key factors that are bullish for future returns. Growth is obviously great, but Cloudflare is also reporting excellent customer retention along with strong cash flows. Its customers are satisfied, it's expanding its offering, and all of this is being accomplished efficiently.
Source Fool.com
