NET
New bull, new price target
Cloudflare just got the kind of nudge momentum traders love: Scotiabank upgraded the stock from Sector Perform to Sector Outperform and lifted its price target from $225 to $300. NET jumped more than 8% on Tuesday afternoon, which is basically the market saying, “Okay, fine, we’ll pay attention now.”
The chart crowd is already smiling
The stock is trading well above its major moving averages, which usually tells you buyers are still in control. In plain English: this isn’t a sleepy little bounce — it’s more like a full-on sprint toward the 52-week high zone.
A few things investors are watching:
- NET is more than 13% above its 20-day average
- It’s also comfortably above the 50-day and 200-day averages
- The stock is pressing into the $277 area, which lines up with that 52-week high territory
That’s great if you’re bullish. It’s also the part where the market gets fussy, because stocks near highs need follow-through, not just one loud trading session and a nap.
Why people keep paying up
Cloudflare still sits in two of Wall Street’s favorite buckets: security spending and edge computing. Those are the kind of themes that sound nerdy until you realize every company on Earth wants faster websites and fewer cyber headaches.
The company’s next earnings call is expected on July 30th, so the market may treat this upgrade as a warm-up act for whatever management says next. If growth stays sturdy and the narrative holds together, the bulls will argue the premium valuation is deserved. If not, the stock’s been running far enough ahead that even a small wobble could get ugly fast.
Big picture: analysts don’t move stocks by themselves, but upgrades can absolutely pour gasoline on an already-hot chart. NET just got a fresh canister.