• Over the past two weeks, Cloudflare has rolled out a wave of AI- and security-focused products, ranging from the open source Cloudflare OS and Identity-Aware AI Gateway to Cloudflare Wallets, an AEO Visibility Dashboard, and a new role as an independent Key Transparency auditor for Signal.
• Together with its existing WhatsApp auditing role, these launches deepen Cloudflare’s role at the intersection of AI, payments, and private communications infrastructure, potentially widening how enterprises use its platform.
• We’ll now explore how Cloudflare OS’s open-source “agentic internet” workspace and related AI tools may reshape the company’s investment narrative.

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Cloudflare Investment Narrative Recap

To own Cloudflare, you need to believe its global network can become core infrastructure for AI, security, and modern applications, even while the company remains unprofitable and highly valued. Recent Q2 results showed rising revenue alongside widening losses, so the newest AI and security launches, plus the US$2,175,000,000 zero coupon convertible notes, matter mainly for how they influence near term margin pressure and execution risk rather than immediately changing the headline catalyst around AI driven demand.

Among the recent launches, Cloudflare OS looks especially relevant because it turns the company’s own internal AI workspace into open source software that runs on its network. If customers adopt it as a daily “agentic internet” hub, it could reinforce Cloudflare’s platform role across security, AI usage, and payments, complementing offerings like Identity-Aware AI Gateway and Wallets while also testing whether new “Act 4” products can translate into durable, monetizable workloads.

Yet even with all this AI product momentum, investors should also be aware that...

Cloudflare's narrative projects $5.4 billion revenue and $580.9 million earnings by 2029. This requires 28.7% yearly revenue growth and a $787.2 million earnings increase from -$206.3 million today.

Uncover how Cloudflare's forecasts yield a $333.55 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Before this Signal announcement, the most bullish analysts were assuming Cloudflare could reach about US$5.4 billion in revenue and roughly US$609 million in earnings by 2029, which is a far more optimistic path than the consensus view, and it hinges on the idea that agentic AI monetization scales quickly rather than stalling, so it is worth comparing those expectations with how you think this new AI and security push might reshape the story.

Explore 10 other fair value estimates on Cloudflare - why the stock might be worth less than half the current price!

Reach Your Own Conclusion

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Cloudflare research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Cloudflare research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cloudflare's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.