Cloudflare (NYSE:NET) closed at $297.58 on October 19 and has returned 45.3% over six months. Its free tier gives the company a huge user base, and paying customers largely come from that pool, with revenue up 35.90% last quarter. However, the company still reports an operating margin of -7.60% and debt at 217.86% of equity, despite positive cash flow. At 178.57 times analysts' next-year estimates, the article argues the business is admirable but the stock is hard to justify at this level, and suggests watching the paid customer count rather than revenue.
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