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Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

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Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#91

Post by christophilus »

nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

I imagine that insiders are allowed to sell after earnings releases. My bet is there’s a blackout window that opens after earnings and insiders exercise their options, causing selling pressure. Just a guess though. It sure how to validate it.

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#92

Post by [deleted] »

nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

[deleted]

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#93

Post by csomar »

spoonjim wrote: post #24
DamnYuppie wrote: post #9

Earlier quoted context omitted.

My feeling is that the price had risen expecting a more stellar result or bullish guidance. When the street didn't get that they took their profits and ran. You can watch the same thing happen to CRM and ZM now in the days leading up to their next earnings call.

What does it mean “the street took their profits and ran”? Who did they sell the stock to?

Traders to other investors. Usually Wall Street traders have some valuation model based on revenue. If the target isn't met, that reduces their model's price.

Some people are less sophisticated and will just buy CloudFlare because they want to buy into the company. It's also possible that the price just adjusts to the new level (though usually there is some volume at every pip)

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#94

Post by cholmon »

noncoml wrote: post #88
cholmon wrote: post #86

Earlier quoted context omitted.

Revenue is up 50%, but profit margin is down a bit, 76.6% in 2020 versus 77.9% in 2019. Plus, the upper range of their expected 2021 revenue is ~$593 million, which would be about 40% revenue growth if I did that math right ($431 * 1.38 = $594). So less growth, decreasing margins = sell I guess?

Genuine question, why are you looking at the gross profit margin? .

I figure more margin is better than less, and it decreased from 2019 to 2020. Is that not a valid way to look at gross profit margin?

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#96

Post by pbiggar »

reducesuffering wrote: post #43
pbiggar wrote: post #19

Earlier quoted context omitted.

FAANG was originally about companies that paid massive engineering salaries, which is why Netflix was included and Microsoft wasn't.

No it wasn't. Cramer coined it due to just FANG (not apple) being totally dominant in their markets and having meteoric rises in stock prices at that time.[0] [0] https://en.wikipedia.org/wiki/Big_Tech#FAANG

I stand corrected, thanks for the reference!

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#97

Post by overcast »

whoisburbansky wrote: post #5
nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

> Down 6% after hours, for reasons that I don't understand. Not trying to be snarky, but this is how I feel about pretty much all AH movement after earnings, for any company. Do you usually not feel this way?

That's why you remain neutral and sell premium, especially on ER with insane volatility crush.

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#98

Post by noncoml »

cholmon wrote: post #94
noncoml wrote: post #88

Earlier quoted context omitted.

Genuine question, why are you looking at the gross profit margin? .

I figure more margin is better than less, and it decreased from 2019 to 2020. Is that not a valid way to look at gross profit margin?

It definitely is.

I was just asking why are you focusing on gross profit margin and not opex or net margin.

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#99

Post by aranibatta »

nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

MACFANG has a nice ring to it.

Re: Cloudflare Announces Fourth Quarter and Fiscal Year 2020 Financial Results

#100

Post by AznHisoka »

nickysielicki wrote: post #3

Down 6% after hours, for reasons that I don't understand. Personally, I'm more-sure that Cloudflare will be around in 25 years than I am that Facebook will be around in 25 years. Their customers are real-valuable customers paying for a real-valuable service, and that's not going away anytime soon. Meanwhile, their serverless stuff is very cool and unique. I think their durable objects are going to go mainstream somed…

The stock is up 400% from a year ago. Is CloudFlare really 400% more valuable than a year ago?
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