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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

#101

Post by acdha »

goalieca wrote: post #70
acdha wrote: post #57

Earlier quoted context omitted.

> It’s hard to switch your CDN provider in the short term, but it’s feasible that Amazon, MSFT or Google could bump them out of every large enterprise in the long term. That's what I'd worry about, too: for a large company, there's a fairly large cost to dealing with each new vendor. Once Amazon, Microsoft, Google, etc. has a CDN which is competitive for your needs someone is going to ask whether the extra benefits a…

So next step for cloudflare is to provide a cloud.

They’re already starting that with Workers & similar but it’s a LONG way from what enterprise customers want. Even if they have some modern stuff they’ll almost inevitably ask for the ability to run some old Windows 2008 server they’ve been meaning to get rid off.

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

#102

Post by christophilus »

khyryk wrote: post #67
MuffinFlavored wrote: post #47

Earlier quoted context omitted.

> The whole market is overvalued. This is actually fake news and I'll tell you why. Bond yields have never been this low. No other alternatives to park capital if you are seeking yield/return. The market is actually correctly valued if you take M2 money circulation/supply into account as well. Something like that. I read it on r/investing. You have to sift through the weed/penny stock posts to find the good informati…

I've been thinking about this for a while. Let's say that the USD is indeed 40% devalued and the market melted up significantly as a result of this -- does this not make "value" stocks a massive bargain? That is, if something was at a PE of 10 before the money printing, has maintained reasonable fundamentals, and remains at a PE of 10, isn't it stunningly undervalued if the same money printing is used to justify "gro…

It depends on how inflation affects the business. A lot of value companies don’t really have pricing power, and will likely have to eat some of the inflation.

Edit: but yes. If we see inflation coming, it’s better to have a dollar now than a dollar in the future, so I guess that should favor value. Hm. Investing is tricky.

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

#103

Post by OJFord »

enos_feedler wrote: post #80
selectodude wrote: post #31

Earlier quoted context omitted.

You can't buy class B google stock. It's owned solely by Larry Page, Sergei Brin, and a handful by Eric Schmidt and others. They're not traded on public markets and give Page and Brin alone 51 percent of all voting rights. Furthermore, if any class B shares are sold, they're converted to class A and lose their 10x voting power.

Interesting, I've always seen two stocks listed (GOOG and GOOGL) but upon further inspection, they are class A and class C. I assumed one was voting and one wasn't but i guess not!

You assumed correctly, but the privately held B class gives more votes. 10 per share to A's 1, iirc.

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

#104

Post by ac29 »

nostrademons wrote: post #35
spoonjim wrote: post #24

Earlier quoted context omitted.

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

Folks like the OP who believe CloudFlare is a good long-term buy but weren't paying attention before the earning's announcement. There's usually some subsegment of investors that believe that earnings are going to be really good, bid up the price beforehand, and figure they'll sell after earnings. If that group is smaller than the folks who see the earnings and figure it actually is a really good buy that they want t…

Sure but most volume is already institutional, and especially during after hours, there is nearly no retail activity.

So, if "the street" took their profits after the earnings release, a different part of said street was buying.

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

#105

Post by JakeTheAndroid »

dcolkitt wrote: post #49
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…

Does Cloudflare have any defensible moat? If Google or Microsoft decided to muscle Cloudflare out of business tomorrow, what’s to stop them? In comparison, we already know that Google can’t take out Facebook.

One thing that, while possible, would take time and be non-trivial is their network hardware distribution. They are have more compute locations globally than Amazon, and it's not close. And one of the main focuses Cloudflare has worked hard at doing is driving down peering prices and offering IX services to get into competitive centers.

Google could replicate this, as could Amazon (that would be more my bet personally), but Cloudflare has no vendor lock allowing customers to use any infra. Google could do the same, but it would almost always have better and more robust support on GCP, and that would create a disconnect. Same for Microsoft and Azure. They're incentivized to vendor-lock you into their compute services. Cloudflare isn't.

But, there is room for multiple competitors across the space. For instance Akamai is still a dominate player in the CDN space and Fastly has been strong. Luckily there are plenty of businesses available that they all can eat. Google muscling in might hurt Cloudflare down the line, but it wouldn't necessarily reduce the staying power of Cloudflare. Again, it's hard to achieve and undo their physical network distribution.

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

#106

Post by efwfwef »

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…

What? There's more chance that Facebook will be much more part of your life in 25 years than Cloudflare. Internet technology comes and go, social networks are here to stay. More than that, VR is going to boom in the next 10 years.

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

#107

Post by throwawaysea »

Are there good alternatives to Cloudflare when it comes to DDOS protection? I’m interested in this especially in the perspective of avoiding censorship, either from activist hackers or companies like Cloudflare making arbitrary decisions on allowed and disallowed content.

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

#108

Post by mike_d »

danielheath wrote: post #81
tidepod12 wrote: post #54

Earlier quoted context omitted.

The major Cloudflare products (namely the CDN, WAF, DDoS protection, DNS management, and even serverless workers) are already replicated in AWS, GCP, and Azure. AFAIK the main thing that draws people to Cloudflare instead is "it's easier to use than bloated AWS/etc." And while that might be a completely valid value proposition, I'm not sure if it's a long term winner, especially as more and more companies migrate to…

The thing that draws me to Cloudflare over AWS is AWS bandwidth charges. CF charge $20/mo for a basic business plan; fronting our domain with CF reduced our AWS egress bill by over $2500/mo.

Cloudflare is the "unlimited storage" of the CDN world. They are giving away investors money today with the hopes that down the road they can... something something.

In 3-8 years activist investors are going to realize that Cloudflare is the man-in-the-middle data collection point for a percentage of the internet and that a merger with $adnetwork would produce a money printing machine. A handful of "good guys" in engineering and management will be powerless to stop it when the time comes.

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

#109

Post by thephyber »

khyryk wrote: post #67
MuffinFlavored wrote: post #47

Earlier quoted context omitted.

> The whole market is overvalued. This is actually fake news and I'll tell you why. Bond yields have never been this low. No other alternatives to park capital if you are seeking yield/return. The market is actually correctly valued if you take M2 money circulation/supply into account as well. Something like that. I read it on r/investing. You have to sift through the weed/penny stock posts to find the good informati…

I've been thinking about this for a while. Let's say that the USD is indeed 40% devalued and the market melted up significantly as a result of this -- does this not make "value" stocks a massive bargain? That is, if something was at a PE of 10 before the money printing, has maintained reasonable fundamentals, and remains at a PE of 10, isn't it stunningly undervalued if the same money printing is used to justify "gro…

I used to care more about PE, but I came to realize that stock valuations are largely about near future expectations. To accurately capture this, you can't just look at the velocity of revenue, but the acceleration as well.

That said, I currently think "value" stocks are out of fashion because of FOMO of the high-PE stocks.

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

#110

Post by mike_d »

xorx wrote: post #22

Maybe I'm too old, and stuck in the mud with the pre-ICANN intention of the original TLDs, but does it seem odd to anyone else that they host their network services on .com and their corporate information on .net?

Cloudflare.net is behind Cloudflare, but the actual site is hosted by Q4. They provide hosted investor relations portals for a bunch of publicly traded companies.

Putting it on a non-cloudflare.com domain puts it outside the security context of the main site and they don't have to worry if it gets hacked. Google does something similar by hosting third-party stuff on withgoogle.com and a handful of other domains.

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