How Investors May Respond To Cloudflare (NET) Tokyo Gartner Security Summit Appearance

Simply Wall St
  • On July 23, 2025, Cloudflare presented at the Gartner Security & Risk Management Summit in Tokyo, with Solutions Architect Naoteru Kokubu as a featured speaker.
  • Participation in such high-profile industry events can boost Cloudflare’s reputation among enterprise security buyers and influence perceptions of its technological leadership.
  • We’ll explore how Cloudflare’s increased visibility in the Japanese enterprise security market may shape its investment narrative going forward.

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What Is Cloudflare's Investment Narrative?

The core thesis for Cloudflare hinges on belief in secular growth of global internet security and edge computing, as companies shift operations to the cloud and threats become more complex. The recent Gartner Security & Risk Management Summit presentation in Tokyo supports Cloudflare's push into Japan, a market already targeted through its Rakuten Mobile partnership. While the appearance offers heightened visibility, especially among enterprise buyers, a single conference presentation is unlikely to meaningfully shift the short-term drivers for the stock, those remain tied to Cloudflare's ability to grow revenue in line with or outpacing its 19.6% forecast, narrow persistent losses, and prove the value of new products like AI security and Log Explorer. The biggest risks continue to rest with high valuation multiples and lack of profitability; neither are materially offset by this latest news, as evidenced by the modest share price movement following the event. But investors should keep in mind how continued high valuation amplifies sensitivity to any shocks in growth or profitability.

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Exploring Other Perspectives

NET Community Fair Values as at Jul 2025
The Simply Wall St Community’s 28 fair value estimates for Cloudflare range from US$11.11 to as high as US$171.95. While this highlights sharply different views, short-term share price risk may be amplified given the company’s elevated Price-To-Sales Ratio and heavy investment in expansion. Opinions across the community are wide-ranging, so it’s wise to compare several viewpoints when evaluating Cloudflare’s risk and reward.

Explore 28 other fair value estimates on Cloudflare - why the stock might be worth less than half the current price!

Build Your Own Cloudflare Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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