Cloudflare's Technicals Look Strong: Will Q4 Earnings Justify Hype?

Comments
Loading...
Zinger Key Points
  • Cloudflare stock is in a strong bullish trend, trading above key moving averages ahead of Q4 earnings.
  • RSI at 78.13 signals overbought conditions, making post-earnings volatility likely despite bullish momentum.
  • Brand New Membership Level: Benzinga Trade Alerts

Cloudflare Inc NET will be reporting its fourth-quarter earnings on Thursday. Wall Street expects 18 cents in EPS and $452.10 million in revenues as the company reports after market hours.

The stock is up 73.71% over the past year, 25.94% YTD.

Let’s look at what the charts indicate for Cloudflare stock and how the stock currently maps against Wall Street estimates.

Read Also: Cloudflare Introduces One-Click Tool To Combat Image Deepfakes And Misinformation

Cloudflare Stock Strongly Bullish Ahead of Q4 Earnings

Cloudflare stock is exhibiting strong bullish momentum ahead of its fourth-quarter earnings report, with the stock trading above key moving averages. The share price of $144.29 is comfortably above its five-day, 20-day and 50-day exponential moving averages, indicating sustained buying pressure.

Chart created using Benzinga Pro

The eight-day simple moving average at $137.48 reinforces the bullish trend, while Cloudflare stock’s position above its 20-day ($125.15), 50-day ($115.93) and 200-day ($90.08) simple moving averages signals strength across all time frames.

For investors, the technical setup suggests continued upside potential if earnings align with or exceed expectations. The Moving Average Convergence Divergence (MACD) indicator at 8.02 supports strong momentum, but the Relative Strength Index (RSI) at 78.13 places Cloudflare in overbought territory. This could introduce short-term volatility, with the potential for profit-taking.

A strong earnings beat could propel the stock higher, while a miss may test support levels around $125–$115. Traders should watch for potential pullbacks, but the broader trend remains bullish.

Cloudflare Analysts See Limited Upside

Ratings & Consensus Estimates: The consensus analyst rating on Cloudflare stock stands at a Buy currently with a price target of $111.46. The latest analyst ratings from Needham, Baird and Truist Securities imply a 3.67% upside for Cloudflare, with a $146.67 price target.

NET Stock Price Action: Cloudflare stock was trading at $141.53 at the time of publication Thursday.

Read Next:

Market News and Data brought to you by Benzinga APIs

Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!