NET Stock Alert: What Does Reddit Say About Cloudflare After A Big Deal With Microsoft?
Although this day has been dull for Cloudflare (NYSE:REPORT), the company has had an impressive week so far. Indeed, yesterday, the infrastructure and security company announced a partnership with Microsoft (NASDAQ:MSFT) and Yandex (NASDAQ:YNDX). This agreement aims to provide customers with faster search results. And, yesterday we saw NET stocks rally and start generating chatter online.
As always, Reddit investors have a lot to say.
What happens with NET stock
Cloudflare is no stranger to market volatility. After gaining more than 15% in the past five days, NET stocks cooled on Tuesday, down around 1% as of this writing.
This trend should not be discouraging. Stocks are still up over 35% for the past month.
It’s common for digital investment communities to view this type of downturn as a key buying opportunity before the stock goes up again. You might have expected to see this today when it comes to NET stocks, but sentiment on r / WallStreetBets and similar subreddits is far from positive. Let’s take a look at what Redditors are saying.
What is the word in the street?
NET stock notices spiked on Reddit early this morning although volume declined slightly, down 3.22% from market opening.
“[S]o this is where the race ends ”, remark on the user, noting that their comment was prompted by the fact that he saw the stock trending on r / WSB.
The sentiment calling for the end of the NET stock’s bull run has been echoed by other users since early this morning. Many have made it clear that they are rooting against him, while others have criticized his overvalued status. As a user who had previously been bullish on the stock Noted:
“NET isn’t just overvalued. [I]This is the top 5 most expensive stocks in the entire stock market. based on sales at market capitalization. I’m a big NET bull, but I never thought it would trade close to $ 60 billion in market cap today. I am ready to trim my position at this level. In reality [I] sold 2 covered call options at $ 200 exercise. Or [I] okay, is that sometimes you have to bite the bullet and take educated bets based on your conviction. last year there were still a few [people] saying NET was overvalued when it was $ 30-40 a share. “
As you would expect in a storyline like this, other users started clamoring for a short play. Like a urges “NET showing weakness on a green day. It’s time to sell that overbought garbage at 100 times the sales.” The comment hasn’t received too many responses yet, but it’s easy to see where the short mentality is coming from. Cloudflare is clearly a company that digital investors like to lean against.
What’s next for NET stock
Volatility has been the name of the game for NET stocks since the markets opened this morning, and as such, it’s hard to know for sure where it’s heading.
While he’s downstairs right now Investor place Analyst Louis Navellier noted yesterday that he sees growth in the future of the company, saying that his recent earnings reports “portray sustained growth. Combined with customer loyalty, the growth potential of NET stock also appears positive. The company is expected to release its third quarter results in November, which should give a better idea of whether its business is slowing down or continuing to pace at a blistering pace. “
As it stands, Reddit users are probably wrong to assume that this marks the end of the NET stock’s bull run. Today’s news also points to a better future for the company, as well as for the shareholders. As November approaches, Cloudflare is worth checking out.
At the date of publication, Samuel O’Brient had (directly or indirectly) no position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publication guidelines.