Cloudflare Slips as Investors Look Ahead to Earnings

Cloudflare shares fell 1.41% to $347.28 in the latest session, underperforming the S&P 500, which lost 0.25%. The Dow fell 0.86%, while the Nasdaq rose 0.24%.

The decline followed a strong month for the stock, which had gained 23.38%. Over the same period, the Computer and Technology sector rose 4%, while the S&P 500 lost 0.42%.

Investors are looking ahead to Cloudflare’s next earnings report. Zacks consensus estimates call for earnings of $0.35 per share and revenue of $733.3 million for the quarter. Those figures would represent year-over-year increases of 29.63% and 30.47%, respectively.

For the annual period, Zacks consensus estimates project earnings of $1.26 per share and revenue of $2.87 billion. The estimates represent gains of 35.48% and 32.54%, respectively, from the prior year. The consensus estimate for earnings per share has not changed in the past 30 days.

Cloudflare’s forward price-to-earnings ratio stood at 278.65, compared with an industry average of 18.78. Its PEG ratio, which also accounts for projected earnings growth, was 7.45; the Internet - Software industry average was 1.15.