Cloudflare's Golden Cross, AI Innovation Signal Next Growth Phase

Cloudflare Inc. NET just flashed a Golden Cross—a classic bullish signal that has technical traders buzzing.

Chart created using Benzinga Pro

Cloudflare stock's 50-day moving average has crossed above the 200-day simple moving average (SMA), hinting at potential longer-term strength.

At $90.91, Cloudflare stock is above key support levels, including its eight-day and 20-day SMAs of $90.66 and $89.90, respectively. This suggests strong momentum even as some selling pressure occasionally tests its resolve.

Read Also: Cloudflare’s Bullish Surge: Does Cramer’s Pick, Goldman’s Straddle Signal A Market Play?

Q3 Earnings Show Strong Growth

But it's not just the technicals that have investors excited.

Cloudflare's third-quarter earnings report reveals a 28% year-over-year revenue growth to $430.1 million, surpassing expectations. This growth was driven by the expansion of its enterprise segment, with customers generating over $100K in annual recurring revenue (ARR), rising by 28% and now making up 67% of total revenue

The Golden Cross coincides with this momentum shift, positioning the stock for potential gains if buying pressure remains consistent.

AI Innovation & Future Outlook

Despite some market headwinds, including slowing revenue growth and a cautious fourth quarter outlook, Cloudflare continues to innovate. Its focus on AI—especially with the launch of Workers AI—could keep it at the forefront of the cloud space. With a revamped go-to-market strategy and impressive cash generation, the company is poised for long-term growth, even if the short-term future is murkier.

However, it's not all sunshine. The stock's forward P/E ratio remains on the higher side at 107.53 according to Benzinga Pro data, and the company’s deep focus on large enterprise clients introduces some revenue volatility.

For technical traders, the Golden Cross and expanding $100K+ customer base hint at a promising outlook for NET, contingent on steady demand from its largest clients.

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