Prince explained that Cloudflare helps solve some of the fundamental problems of being online. One of the services Cloudflare provides is online security.
When asked about their growth prospects, Prince noted that companies are still looking to replace people and physical servers with low-cost, secure alternatives that can scale globally.
Let's check out the charts to see how they are scaling up or down.
Cloudflare went public in September, so in the daily bar chart, below, we do not have a lot of price history to work with. Prices rallied briefly and then declined to an October low before firming into late November. We can see a sideways or neutral trend the past two-and-a-half months. NET is trading just below the declining 20-day and 50-day moving average lines.
The scaling on this chart suggests the trading volume has been very light. The On-Balance-Volume (OBV) line indicates buyers have been slightly more aggressive since early November until recent days. The Moving Average Convergence Divergence (MACD) oscillator is close to the zero line, which tells us that the price action lacks strength.
In this daily Point and Figure chart of NET, below, we can see two things. First, the chart shows a nearby downside price target around $17. Second, a rally to $19.43 is likely needed to turn the chart bullish.
Bottom-line strategy: Some new stock issues can give you clues about their future after a few months of trading. NET is not one of those stocks.