Cloudflare -NET-

After hearing bits about these over recent months and reading some, I decided to jump in and took a tiny starter position a on recent volatility at $73. This is to force me to look into it more and once I have done enough will add to it. Any good insights, articles, info on this company? Not looking for stuff like Motley Fool pointless ‘top 3 cloud stocks’ or whatever but more nuanced looks at it both positive and negative.

If you have to force yourself to start a position to even look into a company properly, maybe you shouldn’t invest in that company or at least revalutate how you start positions.

But hey, your money your choice right?

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Yep I understand it may sound odd, but I have lots I watch, too many to look hard into, so at some point I add 1 in tiny amount to give me ‘skin in the game’ then I start to focus on them. Also by looking at them properly, I mean I have read up a fair bit and on their competitors, Fastly was on my watchlist previously, but as I read more I realised I way preferred Cloudflare, so have done enough reading now for me to be happy to start.

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Haha, I don’t know how I ended up here but this post is quite funny. But its time for a bit of wisdom that might help you.

If you have skin in the game and the company goes up a fair bit before you have done your research that will act as a form of confirmation bias and you will most likely end up putting more money in because the markets have gone your way, not because you have really evaluated the company.

Now if you have 100 different companies you are looking at might I suggest our lord and saviour the ETF? stock picking can be great but in the long run nothing beats the market. Now I don’t know how much you have invested but research should really be the first thing you do when looking to get into a company.

There are like 5k companies listed on 212 so there are always companies that look good but just because it looks good doesn’t really mean you have to look into it, you are much better off having a few well-researched companies than a lot of companies that look good and that you have looked at the Marketwatch page of.

Now I get where you are coming from, you read enough to be comfortable putting a little bit in but why not just do that extra bit of research to see if the company meets your standards? I have a friend who does something similar to you but he finds companies, researches them but then compares against companies that he already has or is going to add to see how they compare. You shouldn’t have to get skin in the game to research a company.

There are thousands of articles out there about the next big thing, most of the people who are posting these articles get paid to write then. They themselves don’t have skin in the game. Articles are a good place to start but investing any amount based on them is a bit reckless.

Thank you for listening to my TED talk, I will be here all week, don’t forget to try the fish and tip your waitress!

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I feel like people are missing the point, I would like to discuss Cloudflare not people to assume investing styles etc. I merely made a comment I started small based on enough research, but plan to do more too which is literally the normal way… Also of course I am aware of ETFs (i own several) and so I know any ‘cloud’ or ‘computing’ ETFs should be avoided like the plague. Aware of stock picks vs ETF debate, I use both like many do. Lastly whilst appreciate the thoughts, don’t worry about my risk, have you seen the portfolios that get posted on here? Teslas usually their ‘stable’ play and half their ‘stock picks’ haven’t turned a profit yet.

Please lets talk about Cloudflare, or mods may as well close this.

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Cloudflare good, Tesla bad, Fastly sus (very heavily related to China) , Crowdstrike sus 9 (they sponsor a F1 team).

But for real Cloudflare is a good growth prospect, I have owned it for coming to 1.5 years and in that time they have had stable growth both as a company and in its price. I am someone who averages into it regularly and I couldn’t be happier. I am happy about the fact that it’s back down to 75ish because that reflects the actual value of the company rather than the much higher 98 it was pushing a couple of weeks ago.

Management seems to know what they are doing and they are in a sector where growth is very possible.

Solid 8.5/10 would hold in the long run

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Thanks that is good to hear as many of those conclusions I had come to hence my new position in it, I had read up on the management and seem very favourable to others. Fastly related to china? Do you mean the TikTok issues? My big issues with fastly was they relied/rely on too few big customers, so when they lost Tiktok hurt them, also I believe unless its changed their pricing model of pay for what you use is less reliable IMO.
Cant remember exactly but months back I decided to avoid Crowdstrike so havent looked into that since I mentally discard it.

What do you or others think are the biggest competitors and headwinds for NET going forward? Is it the big MSFT/AMZN or others on smaller current scale like FSTLY etc.

I saw this at $45 a few months back and probably kicking myself now.

Still looks good but looking elsewhere now.

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I bought at $15 and sold at $30, thought it was good lol.

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To add to what has already been said, I have also been in it for quite a while but I don’t add to it regularly. It’s just ticking away in the background for me with some random adds whenever it seems good or when I have the excess cash as I have other positions I’m looking to build.
I think it’s pretty decent but it has run up an awful lot so just be wary.

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I’m not really into this space right now but I had a little look on Simply Wall Street at some bits and there does seem to of been a lot of insider selling in the last 12 months. Is that a risk?

Playing devils advocate if I was an insider and of gained 200 odd % in a short space of time I’d probably be doing the same.