As I'm writing this, Cloudflare's stock ($NET) is trading 3.87% higher than yesterday's close, putting it at +23.37% over just the last 5 days of trading, and around +37% from its low in late Jan. My understanding is that the market has seen some dip-buying on many of these high-growth expectation tech companies, however with Cloudflare's already-high valuation, even at double digit stock prices, I'm wondering if the market is pricing in nothing less than an astounding earnings beat this evening for a company that's still in growth mode.
Is there a case out there that could possibly justify these kinds of nosebleed valuations, or is stock in Cloudflare just dummy overbought?
Position disclosure: 70 shares @ 102
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