Here's How Cloudflare Shares Gained 10.2% in March
Shares of online services specialist Cloudflare (NYSE: NET) rose 10.2% in March 2020, according to data from S&P Global Market Intelligence. This fairly modest gain was a significant achievement in comparison with the S&P 500 market index, which fell 12.5% over the same period. The coronavirus crisis might actually work out in Cloudflare's favor, as the company benefits from business operations and personal entertainment moving online.
Cloudflare introduced a new work-from-home service in January, named Cloudflare for Teams. That launch proved to be well-timed when the COVID-19 crisis ramped up in February. Furthermore, Cloudflare's online security services are in high demand because of increased bandwidth usage around the world. The company saw a 10% increase in peak internet traffic in March, led by a 30% traffic boost in hard-hit areas like Italy.
"None of these traffic changes raise any concern for us. Cloudflare's network is well provisioned to handle significant spikes in traffic," the company wrote in a blog post. "We have not seen, and do not anticipate, any impact to our network's performance, reliability, or security globally."
Source Fool.com
