RBC and Stifel Maintain Bullish Ratings on Cloudfare (NET) Amid Strong Cloud Infrastructure Demand

RBC Capital Markets and Stifel Nicolaus have reiterated their positive sentiment toward Cloudfare Inc. (NET), maintaining Buy ratings on the stock despite broader market volatility. Both firms highlighted NET’s consistent quarterly revenue growth, which reached $443 million in Q4 2025—a 28% year-over-year increase—driven by strong demand for its cloud security and edge computing platforms. The firms noted that Cloudfare’s gross margin expanded to 75% in the same period, reflecting operational efficiency and scalability in its infrastructure model. Analysts pointed to the company’s expanding customer base, which now includes over 30,000 organizations globally, with enterprise clients contributing 42% of total revenue—up from 36% in 2024. Market implications are significant for investors monitoring tech equities, particularly in cloud infrastructure. The continued support from two major financial institutions adds momentum to NET’s recent outperformance, with the stock up 18% over the past three months. Institutional investors and traders are likely to monitor quarterly guidance closely for further signals on growth trajectory. Cloudfare’s strategic investments in AI-powered threat detection and network optimization are also viewed as long-term differentiators. Analysts believe the company is well-positioned to capitalize on rising cybersecurity needs across digital-first enterprises, particularly in North America and Western Europe.