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What Cloudflare (NET)'s Digital Inclusion and Stablecoin Initiatives Mean for Shareholders

Simply Wall St · 10/03/2025 12:53
  • In late September 2025, Cloudflare announced several major initiatives, including a partnership with Giga to help UNICEF and the ITU use its Speed Test solution for monitoring and improving school Internet connectivity worldwide, new tools for content control, and the introduction of a USD-backed stablecoin and open payments standard for the AI-driven web.
  • These developments position Cloudflare at the intersection of digital infrastructure, payments innovation, and ethical content management, highlighting its expanding influence across key sectors shaping the future of the Internet.
  • We'll examine how Cloudflare's collaboration with global partners to bridge the digital divide could impact its long-term growth narrative.

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Cloudflare Investment Narrative Recap

To own Cloudflare stock, you need to believe in its ability to expand as a core provider of digital infrastructure and security, capturing new growth by supporting the AI-driven internet and large-scale partnerships. While recent partnerships and payments innovation highlight Cloudflare’s ambition, customer concentration and uncertain monetization of new initiatives remain the most important short-term catalyst and risk; these news events, while promising, do not immediately change those dynamics.

Among recent announcements, Cloudflare’s NET Dollar stablecoin is particularly relevant, as it is intended to support transaction models for a more autonomous, agentic web. This aligns directly with the company’s efforts to capture emerging revenue streams, but meaningful financial impact will depend on execution and adoption rates for these advanced payment solutions.

However, despite Cloudflare’s progress, persistent margin pressure and unanswered questions about the durability of its profitability growth are risks investors should be aware of if...

Read the full narrative on Cloudflare (it's free!)

Cloudflare's narrative projects $3.8 billion revenue and $176.4 million earnings by 2028. This requires 26.5% yearly revenue growth and a $293.5 million increase in earnings from -$117.1 million today.

Uncover how Cloudflare's forecasts yield a $209.01 fair value, a 7% downside to its current price.

Exploring Other Perspectives

NET Community Fair Values as at Oct 2025
NET Community Fair Values as at Oct 2025

The Simply Wall St Community’s 32 fair value estimates for Cloudflare run from as low as US$11.11 up to US$209.01, a wide spectrum that reflects starkly different growth and risk expectations. With gross margins declining and profitability still some way off, you should weigh these diverse views alongside ongoing margin pressure to see how your outlook compares.

Explore 32 other fair value estimates on Cloudflare - why the stock might be worth less than half the current price!

Build Your Own Cloudflare Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.