Ahead of Cloudflare Earnings, Here's What Barchart Data Says Comes Next for NET Stock

Cloudflare (NET) shares have fallen out of favor with investors in recent weeks, but the derivatives market believes some near-term recovery is likely after the company reports its Q3 results on Nov. 5. Consensus is for the cybersecurity and cloud networking company to report $0.02 in earnings per share (EPS), which would represent a whopping 300% growth on a year-over-year basis. 

Despite the recent pullback, Cloudflare stock remains up nearly 35% versus the start of this year.

Options Sentiment Remains Bullish for Cloudflare Stock

Options traders are increasingly betting on a post-earnings rally in NET shares. 

According to Barchart’s latest data, the put-to-call ratio on contracts expiring Nov. 13 sits at 0.30x as of writing, signaling a strong bullish skew. A reading below 1.00x is typically characterized as in favor of the buyers. 

And the upper price on those options contracts is set at about $311 currently, indicating potential for a nearly 14% surge through the end of next week. 

Seasonal returns also favor owning Cloudflare heading into the earnings event. The NYSE-listed firm has historically gained nearly 9% on average in November. 

What to Look for in NET’s Fiscal Q3 Earnings

One of the key drivers to watch in Cloudflare’s third quarter is demand tied to artificial intelligence (AI) workloads. 

The company has increasingly positioned itself as critical infrastructure for AI developers through offerings such as Workers AI, Vectorize, and GPU-powered inference services, enabling customers to build and deploy AI applications closer to end users.

Investors will also be looking for continued traction among large enterprise customers, an area that has supported revenue growth despite a challenging spending environment. 

If management reports stronger large-deal activity or accelerating adoption of its platform bundles, it could reinforce the view that NET is successfully growing beyond its traditional content delivery and security roots.

Any upside in revenue growth, customer additions, or AI-related bookings could be enough to rekindle bullish sentiment and justify a rebound in Cloudflare shares following their recent pullback.

What’s the Consensus Rating on NET Shares?

Wall Street analysts are largely bullish on NET stock heading into the company’s fiscal Q3 earnings. 

The consensus rating on Cloudflare sits at “Moderate Buy” currently, with the mean price target of about $353 indicating significant upside potential from here.

On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.