Man what if the government just sporadically decided to shut down Cloudflare one morning based on a feeling. That'd be unfortunate.
Cloudflare S-1
251–260 of 366 posts
Re: Cloudflare S-1
#252Earlier quoted context omitted.
Why not just pay a dividend? That's what stocks are supposed to be, shares of ownership in legitimately valuable enterprises with return on investment.
I agree, but the greater fool theory and financial engineering (ie buybacks) will lead to greater profits for stockholders in the long run.
Should Google have paid a dividend in 2004? They made $150MM in profit in the 1st half of that year they definitely had the money to spare...
Re: Cloudflare S-1
#253Finally an IPO I want to buy into. Technical fundamentals matter. Edit: I mean that in the software/service way, not the economical way, in case there was any confusion.
> Technical fundamentals matter. Centralization of the entire internet behind a single entity is a _bad_ thing for people who care about technical fundamentals.
You realise that Cloudflare is nowhere near a monopoly, right? They might be the most 'household' CDN, but they're far from the first or biggest
Re: Cloudflare S-1
#254Probably a good one to hop into for a quick gain due to hype and usage, but long-term the price will fall. Will continue to monitor, but looking like it will be the standard 7/11 IPO strategy - get in and immediately start the sell off if price drops 7% day-to-day or 11% consecutively, then short to price where losses are matched.
How is that better than just putting 11% of your investment on black or red?
Re: Cloudflare S-1
#255Re: Cloudflare S-1
#256Here's what Cloudflare's CEO wrote on their blog: "In the two years since the Daily Stormer what we have done to try and solve the Internet’s deeper problem is engage with law enforcement and civil society organizations to try and find solutions. Among other things, that resulted in us cooperating around monitoring potential hate sites on our network and notifying law enforcement when there was content that contained…
While I agree there is a risk, I think a lot of their free customers would either not be using SSL at all, or else would find it too complex to remain independent and just have a Facebook page instead, if Cloudflare didn't make that kind of thing easier. Neither seems like it would be better. Not to mention things like being able to resist a DDOS from anyone who dislikes you. Sure, there may be some people using Clou…
I don’t think non-technical people will be using CF directly. More like WiX GoDaddy etc.
Re: Cloudflare S-1
#257Earlier quoted context omitted.
Growth will also give return on investment. I'd rather see Cloudflare invest in growth and R&D than give a dividend. They are nowhere near finished growing.
What more would you expect from them? Not looking for an argument, honest question.
AWS-like cloud infrastructure
Re: Cloudflare S-1
#258> Today, our network spans 193 cities in over 90 countries and interconnects with over 8,000 networks globally, including major ISPs, public cloud providers, SaaS services, and enterprises. We estimate that we operate within 100 milliseconds of 98% of the Internet-connected population in the developed world, and 93% of the Internet-connected population globally (for context, the blink of an eye is 300-400 millisecond…
>Throughout this year it is just loss-making companies floating everywhere on the markets here and have boarded the hype-train into the red.
Cloudflare is a loss-making company too, and their losses are growing. From the S-1: "we have incurred net losses of $17.3 million, $10.7 million, and $87.2 million for 2016, 2017, and 2018, respectively"
Re: Cloudflare S-1
#259Earlier quoted context omitted.
You forgot the API! I have my own dynamic DNS with a raspberry and the cloudflare API for instance, it's very useful.
Oh I didn't know you could do that. Do you move the Rpi around a lot? What do you use the dynamic dns for?
Many ISPs around the world give you public IPs without NAT, but they're dynamic and change every once in a while.
Re: Cloudflare S-1
#260Earlier quoted context omitted.
There's more to it than that. In order to pay dividends, you have to pay corporate tax before you can pay out the dividends. And that is almost 40% on the top end. So the effective tax of qualified dividends is more like 60%. Alternatively, if you can stash money overseas in tax free accounts or invest the money back into the business to avoid taxes, then you only have the long term capital gains tax.
"After the passage of the Tax Cuts and Jobs Act, on December 20, 2017, the corporate tax rate has been changed to a flat 21% starting January 1, 2018"
Corporate taxes are different from personal income taxes.