Are Cloudflare & Global-E Buys Now?

Quality & Valuation updates

Hi Multis

Now that so many stocks have dropped so much, I want to help you as much as possible with valuation updates.

After The Trade Desk yesterday, I wanted to dedicate an article to two other stocks that saw a big drop,

The first stock I'll tackle is Cloudflare (NET). The stock is down about 33% since I gave the last valuation update about a month ago. My call to give it a 3/10 score for valuation already turned out to be a good one, but that doesn't matter now. The question is if Cloudflare is already interesting right now or if we should wait to add to the position (or start one).

The quality score was already updated in the previous article, so we only have to look at the valuation for Cloudflare.

For Global-e, we will update both the quality score and the valuation.

Valuation

I think you already know that this is how I value stocks, depending on their life cycle.

Cloudflare is still in high growth. So, let's check the valuation methods that fit that stage.

First, let's look at the EV/Gross profit. I'm always happy that Finchat has this metric, unlike most others.