The shares of Cloudflare (NET, $44.6), which were in short positions by our robots, fell by more than 20%.
Cloudflare, an internet services and security company, reported its first-quarter results which missed on the top line, causing its shares to plummet by as much as 25% in after-hours trading on Thursday. Although Cloudflare's adjusted earnings per share of 8 cents exceeded the expected 3 cents per share, its revenue of $290.2 million fell short of the expected $290.8 million. The company also revised its full-year revenue guidance for 2023 down to around $1.28 billion, a significant drop from its previous guidance of between $1.33 billion and $1.34 billion. Cloudflare's CFO, Thomas Seifert, attributed the revision to the lengthening of sales cycles and a significant backend-weighting of linearity due to increasing macroeconomic uncertainty. Additionally, Cloudflare's guidance for the second quarter of 2023 was below consensus estimates, with the company projecting revenue between $305 million and $306 million, versus a consensus estimate of $319 million. Despite reporting a net loss of $38 million for the quarter, the company's loss was less than the $41 million loss reported for the same period in the previous year.
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NET's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for NET turned positive on November 19, 2024. Looking at past instances where NET's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 06, 2024. You may want to consider a long position or call options on NET as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NET advanced for three days, in of 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 276 cases where NET Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NET declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NET broke above its upper Bollinger Band on November 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NET’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (42.373) is normal, around the industry mean (31.038). P/E Ratio (0.000) is within average values for comparable stocks, (160.694). Projected Growth (PEG Ratio) (2.377) is also within normal values, averaging (2.755). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (24.631) is also within normal values, averaging (58.073).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
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General Information
a company, which engages in the provision of cloud-based services to secure websites
Industry PackagedSoftware