Comment by kristjansson
7 hours ago
> Cloudflare expects second-quarter revenue of $664 million to $665 million,
obviously $2.5e9ish/yr is substantial in absolute terms ... but that's it? They intermediate half the internet and only capture $7m/day?
7 hours ago
> Cloudflare expects second-quarter revenue of $664 million to $665 million,
obviously $2.5e9ish/yr is substantial in absolute terms ... but that's it? They intermediate half the internet and only capture $7m/day?
They are in a great position to generate a lot of value without rising prices, they haven't realized it yet because what they have to do is pretty boring.
Businesses tend to choose them because they're cheaper than alternatives.
I think about investing in Cloudflare but that P/E ratio scares me off every time.
Don’t worry about P/E ratio. If you worry about P/E ratio all the time you would have missed every major tech opportunity for the past decade.
They don't have a PE ratio. They have never made a profit.
PE ratio too high!
Sir, that is price/revenue ratio
(jawdrop)
NaN is scary
Their revenue is growing 30% yoy, so investors are speculating it to pay off in the end.
Oh less than Atlassian. Suprised.
Atlassian has a moat of features despite being expensive. You see nibbles by stuff like Monday.com but never big chunks.
CloudFlare is honestly still iterating to find a moat other than 'really cheap'.
High P/E means a good moat.
(Too high and everyone is looking for a start-up to eradicate your product segment of course).