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

Cloudflare Inc NET will report third-quarter earnings on Thursday. Wall Street expects 18 cents in EPS and $424.12 million in revenues as the company reports after market hours.

The stock is up 40.17% over the past year, 16.58% YTD.

Jim Cramer Cloudflare, Goldman Sachs Recommends Straddles

Ahead of Cloudflare’s earnings report, the stock is drawing attention from both CNBC's Jim Cramer and Goldman Sachs.

Cramer has highlighted Cloudflare as a solid network security play with a strong setup, while Goldman Sachs recommends buying straddles on the stock in light of improving trends in SMB software demand. The firm's suggested trade involves purchasing the Nov. 8 Weekly $87 straddles, priced at $10.55, as the market anticipates potential volatility following the U.S. election results.

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

Read Also: Cloudflare Opens New Lisbon HQ, Supporting 350+ Employees

Cloudflare Stock Heats Up With Bullish Momentum – But Watch The RSI

Cloudflare stock is riding a strong bullish wave, with its current price of $92.51 comfortably above the five, 20 and 50-day exponential moving averages.

Chart created using Benzinga Pro

This positioning signals robust buying pressure, a promising indicator for continued upward momentum. NET's eight-day and 20-day simple moving averages (SMAs), at $88.66 and $90.02 respectively, are also giving bullish signals, underscoring short-term strength and investor confidence.

Adding to the case, NET's 50-day SMA at $84.25 and the 200-day SMA at $84.62 sit well below the current price, creating a strong technical floor and reinforcing its bullish trend.

The Moving Average Convergence/Divergence (MACD) indicator, sitting at 1.20, suggests momentum is firmly in NET's favor. However, with a Relative Strength Index (RSI) of 62.12, Cloudflare is inching toward overbought territory, hinting that the rally may face resistance ahead.

Investors may want to keep an eye on the RSI for signs of a potential breather while NET continues to bask in bullish territory.

Cloudflare Analysts Consensus Ratings

Ratings & Consensus Estimates: The consensus analyst rating on Cloudflare stock stands at a Neutral currently with a price target of $89.26.

Price Action: Cloudflare stock closed the trading day Wednesday at $92.51, up 5.47%.

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