Net Stock Price Prediction: Will Results Lead to Breakout?

• The net stock price surged 6.89% in the last trading session and is currently trading at $69.52.
• Cloudflare Share Price (NYSE: NET) underperformed the US IT industry which returned 0.7% over the past year.

CloudFlare, Inc. is a cloud services provider that offers various services to businesses around the world. The company’s security products include web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, secure origin connection, and rate-limiting products.

Cloudflare, Inc. (NET) announced its Q2 2023 results on July 29, 2023, showing strong growth and performance. The company’s revenue increased by 53% year-over-year to $152.4 Million, surpassing the analysts’ estimates of $149.2 Million. The company’s net loss improved to $24.1 Million, or $0.07 per share, compared to $26.1 Million, or $0.09 per share, in Q2 2022.  

Cloudflare’s share price currently trades at $69.52, inclining 6.89% in the last trading session. The net stock holds a market cap of $23.2 Billion. It has a total of 331.9 Million shares outstanding. The Ps ratio for the stock is 20.1. The price-to-sales ratio for the stock is 21.82.

Net stock derivatives data states that the current implied volatility in the market is 57.26% with a decrement of 20.93% in the last trading session. It has a total of 252.93K open interest contracts as of now. The PUT/CALL ratio is 0.91 indicating a bearish sentiment coming to an end as PCR is bottoming out.

Net Stock Price Prediction Using Price Action Strategy

The Net share price prediction reveals that the stock price has been rising since May 2023, after the disclosure of the last quarterly results. The Investors showed interest after the results of the stock and the price observed a hike of 70% from May 2023 to June 2023.

Currently, the stock price is observed to be consolidating for the past 2 months near the previous swing high possibly waiting for the results. The disclosure of the results affected the stock to open 10% gau up followed by a profit booking and the price was up by 6.89 at the time of closing.

However, the price is still trading below its primary resistance zone.

Now, if the price breaks above $72.07 then the price may surge up to $80.11 which is a major supply zone and act as a resistance to the price.

Moreover, if the profit booking continues the price may slide down to get the buyer’s support near the previous demand zone.

Net Share Price Forecast from Indicators’ point of view

As per the EMA analysis, the Net stock price is trading above 50 EMA which indicates the short-term buyers’ presence in the market. Also, it may act as a support as the price approaches it.

At the time of publishing, the RSI value of the Net share price is 55.61 and that of the SMA line is 52.49. RSI is headed upwards getting support from the SMA line which shows the short-term presence of buyers in the market. 

Conclusion

Net stock price prediction concludes that the stock has been rising since May 2023, after the last quarterly results. The price increased by 70% from May to June 2023 but then consolidated for two months near the previous high. They opened 10% higher after the results but then fell by 1.44% to close at $129.80. The price may break above $72.07 and reach $80.11, or fall to the previous demand zone.

Technical Levels

• Support levels: $60.33 and $51.61.
• Resistance levels: $72.27 and $80.11.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.