American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Cloudflare and Fortinet stocks soar after strong Q4 earnings: key takeaways for investors

by admin February 8, 2025
February 8, 2025
Cloudflare and Fortinet stocks soar after strong Q4 earnings: key takeaways for investors

Shares of Cloudflare and Fortinet were surging on Friday after both companies delivered better-than-expected fourth-quarter earnings, boosting investor confidence in the cybersecurity sector.

Cloudflare stock was up by 11.46% at market open on Friday, while Fortinet was up by almost 4%.

The rally came as both companies exceeded Wall Street estimates and provided positive guidance.

However, their CEOs’ comments on key market themes—including artificial intelligence spending and trade tensions—drew just as much attention as the earnings themselves.

Analysts though, expressed a broadly bullish sentiment on both stocks.

Analysts increase TP for Cloudflare (NET), CEO says DeepSeek bodes well for co.

Following the strong earnings report, Bernstein SocGen Group raised Cloudflare’s price target from $80 to $100, maintaining a market perform rating.

Needham analysts were more bullish, increasing their price target from $160 to $185 while keeping a buy rating.

Cloudflare’s stock has already posted a nearly 70% return over the past year and is trading close to its 52-week high of $144.30.

Cloudflare CEO Matthew Prince also addressed the impact of Chinese AI startup DeepSeek during the company’s earnings call.

DeepSeek’s rapid rise has disrupted the AI landscape, raising fears that major cloud providers may struggle to justify their enormous AI investments.

Prince pushed back against the idea that AI innovation must come with massive costs, stating that Cloudflare’s business model aligns well with this evolving landscape.

“This idea that the only way to win in AI was to spend hundreds of billions or even trillions of dollars—I think DeepSeek shook that foundation, and I think that plays very much to Cloudflare’s strength,” he said.

He also emphasized Cloudflare’s ability to maximize efficiency in AI processing.

“We are extremely good at wringing out as much efficiency as possible, and we’re seeing the same opportunities with inference that DeepSeek saw with training,” Prince added.

Cloudflare uses a globally distributed network of GPUs, allowing customers to build AI applications at a lower cost.

Fortinet (FTNT) share price target increased, but CFO flags tariff impacts

While Cloudflare focused on AI, Fortinet CFO Keith Jensen addressed trade concerns, warning that tariffs could create headwinds for the cybersecurity sector.

He pointed to increased levies on imported technology components as a reason for Fortinet’s cautious guidance for the current quarter.

Despite this, Fortinet delivered a strong Q4 performance, reporting adjusted net income of 74 cents per share on revenue of $1.66 billion.

This exceeded analysts’ expectations of 61 cents per share on revenue of $1.59 billion.

“Fortinet reported a solid quarter across the board, helped by an improving firewall market and an early start to large customers’ refresh activity,” said Keith Bachman, an analyst at BMO Capital Markets.

He noted that Fortinet’s operating margins exceeded consensus estimates by over 500 basis points.

For 2025, Fortinet projected revenue between $6.65 billion and $6.85 billion, in line with estimates.

The company expects billings to reach $7.3 billion, signaling steady demand despite macroeconomic uncertainties.

Cantor Fitzgerald raised its price target for Fortinet from $95 to $110, maintaining a neutral rating.

The firm’s estimate suggests a potential 5% upside from Fortinet’s last closing price.

Customer growth and future outlook

Cloudflare’s earnings report highlighted robust customer growth, with record net additions in both the over-$100,000 and under-$100,000 categories.

The company’s revenue retention rate also improved by 1%, though analysts caution it may temporarily dip next quarter due to a leap-year comparison before rebounding.

Fortinet, meanwhile, benefited from early IT spending by large enterprises, particularly in firewall security.

While management expects a 10% increase in billings this year, analysts believe the company’s second-half refresh cycle could push growth even higher.

With AI reshaping the technology landscape and trade uncertainties lingering, both Cloudflare and Fortinet remain well-positioned for long-term growth.

As investors digest these earnings, the focus will be on how these companies navigate evolving market dynamics in the months ahead.

The post Cloudflare and Fortinet stocks soar after strong Q4 earnings: key takeaways for investors appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Well, that escalated quickly
next post
Nike’s leadership under fire? Citi unimpressed with CEO meeting

Related Posts

FTSE 100 and FTSE 250 shares to watch:...

April 18, 2025

Geopolitics more crucial than interest rates in Japan...

September 24, 2024

Archer Aviation stock has crashed: can ACHR shares...

December 3, 2024

How is the SPYI ETF doing as the...

April 14, 2025

Why are Kering shares tumbling, and what does...

March 15, 2025

Westpac share price slipped after earnings: time to...

May 5, 2025

Stellantis plunges 14% after lowering forecast: what’s driving...

September 30, 2024

XRP falls below key $2.65 support: can it...

February 17, 2025

Trump’s tariff hikes cause steel stocks to fall...

June 2, 2025

Pony AI stock: Tencent news sends robotaxi specialist...

April 26, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved