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I'm a NET watcher/holder, I've read most of their earnings call transcripts and SEC docs since the S-1. IMO, they were way overvalued at their peak on fundament
by gen220 4y ago
I'm a NET watcher/holder, I've read most of their earnings call transcripts and SEC docs since the S-1. IMO, they were way overvalued at their peak on fundamentals. With the recent slide, I think they're "far" undervalued, to an extent that varies based on how much value one attributes to present and future tailwinds that cannot be encoded on a balance sheet as future receivables.
Boiling it down, I think institutional investors do not fundamentally understand Cloudflare's technical raison d'etre.
As you implied, NET gets lumped in with its IPO class of "tech stocks", but is fundamentally different, for the reasons you gave. They have a legitimate moat, differentiated technical talent, and are fishing in a growing pond.
Similar to the Amazon story, it seems inevitable that a company shaped like NET is going to make oodles of money in the next ten years provided they have the right leadership and capital structures. NET has all that, and a several-years head start. On and up.
- brundolf 4y agoThis may be the wrong place to ask, but if a regular person wanted to buy stock in an individual company or two, and mostly hold it (not day-trade), what's the right channel for that? Might put some fun-money in Cloudflare
- mypalmike 4y agoAny online broker would suffice. Ameritrade, E-Trade, Fidelity, etc. There are many to choose from.
- rizzom5000 4y agoLots of online brokers will let you trade individual securities. The used to be more fees associated, but lots of places now allow zero-fee trading as well. ymmv https://www.nerdwallet.com/best/investing/online-brokers-for-beginners https://www.nerdwallet.com/best/investing/online-brokers-for...
- londons_explore 4y agoPlease don't call it zero-fee. Try buying $1000 worth of any stock and immediately selling again. Notice how you now only have $980. You effectively paid a $20 fee. It was just a hidden fee in the spread caused by whoever executed your trades.
- shahmeern 4y agoPlease stop spreading misinformation. There are two prices, the bid price (how much someone is willing to pay) and an ask price (how much someone is willing to sell). When you submit a market order, you usually get a price close to the bid (if you’re selling) or the ask (if you’re buying). The 20$ difference you describe is the spread - not a fee taken by the brokerage, market maker, exchange. Whoever is executing your trade isn’t pocketing the 20$.
- londons_explore 4y agoThe counterparty for the bid price, and the counterparty for the ask price are commonly the same person. So when you execute both trades, you are putting a literal $20 into their pocket.
- dchftcs 4y agoThen just don't execute both trades... and everyone can quote on the current bid or the ask price, you should do it too if you're afraid of crossing the spread.
- shahmeern 4y agoThat's fair but calling it a fee is disingenuous, especially considering your contrived scenario of buying and then immediately selling
- smaryjerry 4y agoIs that misinformation or not? Don’t market makers make their profits by collecting some difference between bid and ask? I recall a video from Warren Buffett explaining that it was criminal that firms like Robinhood get away with calling it zero fee trading.
- scrollaway 4y agoI’m the cofounder of https://olainvierte.com https://olainvierte.com - we released our stock trading app just days ago. We focus on financial education and long term financial health for Latin America but anyone is welcome :)