We came across a bullish\u00a0thesis on Cloudflare, Inc. on Expanse Stocks\u2019s Substack by Nikotes. In this article,\u00a0we will summarize the\u00a0bulls\u2019\u00a0thesis on\u00a0NET.\u00a0Cloudflare, Inc.’s\u00a0share was trading at $195.85\u00a0as of\u00a0February 13th.\u00a0NET\u2019s\u00a0forward\u00a0P\/E\u00a0was\u00a0169.49\u00a0according to Yahoo Finance.<\/p>\n everything possible\/Shutterstock.com<\/p>\n Cloudflare, Inc.\u00a0operates\u00a0as a cloud services provider that delivers a range of services to businesses worldwide.\u00a0NET\u00a0delivered a standout fourth quarter of 2025, with revenue growth re-accelerating to 34% year over year and new annual contract value bookings surging\u00a0nearly 50%,\u00a0signaling\u00a0that the company\u2019s multi-year go-to-market restructuring is translating into tangible momentum. Management, led by CEO Matthew Prince, highlighted record enterprise wins, including its largest contract ever, alongside rising sales productivity and adoption of its \u201cPool of Funds\u201d contracting model, which reduces friction and encourages broader platform commitments.<\/p>\n A central driver of the bullish thesis is Cloudflare\u2019s positioning as infrastructure for the emerging \u201cagentic internet,\u201d where AI agents generate exponentially higher traffic volumes than humans, creating demand across both security and compute products such as Workers. Unlike many software peers, Cloudflare is already monetizing AI adoption while\u00a0maintaining\u00a0capital efficiency, with capex at\u00a0roughly 12\u201315% of revenue and a Rule of 40 near 50, supporting premium valuation arguments.<\/p>\n The company is also increasingly competing with\u00a0hyperscalers\u00a0like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, winning workloads through its serverless, edge-native architecture that aligns costs with performance efficiency. Longer term, optionality around monetizing AI content access\u2014acting as an intermediary between content owners and AI companies\u2014could\u00a0represent\u00a0an\u00a0additional\u00a0growth vector that\u00a0remains\u00a0underappreciated.<\/p>\n While risks include potential gross margin compression,\u00a0hyperscaler\u00a0retaliation, and\u00a0macro IT\u00a0spending volatility, Cloudflare\u2019s re-accelerating growth, expanding enterprise penetration, and durable network effects position it as a high-quality compounder capable of sustaining elevated growth with improving profitability over time.<\/p>\n Previously, we covered a\u00a0bullish thesis<\/b> on Cloudflare, Inc. (NET) by Oliver | MMMT Wealth in April 2025, which highlighted the company\u2019s network effects, managing 20% of global web traffic,\u00a0strong growth\u00a0trajectory, and approaching profitability inflection. NET’s stock price has appreciated by approximately 83.36% since our coverage<\/strong>. Nikotes shares a similar view but emphasizes GTM-driven re-acceleration and AI infrastructure tailwinds.<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>