A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
CrowdStrike and Cloudflare are surging in 2025, but choosing between them depends on whether you prefer proven profitability or high-risk growth potential
Cloud infrastructure provider Cloudflare is in the news this week because of its recent action of allowing users to block AI bots from scraping their websites.
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
Cloudflare delivered a first-quarter performance that outpaced Wall Street’s revenue expectations, driven by strong growth in its large enterprise customer base and continued demand for its security and developer platforms. CEO Matthew Prince credited the quarter’s momentum to notable wins, including the largest contract in company history—over $100 million—stemming from its Workers developer platform. Management emphasized that improvements in sales productivity and a disciplined approach to cost control enabled Cloudflare to navigate a volatile macroeconomic environment. Prince noted, “We saw particular strength with our largest customers, those that spend over $1 million and $5 million with Cloudflare per year.”
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold.
Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Cloudflare, Inc. announced pricing of $1.75B convertible senior notes due 2030, option for additional $250M, and intends to use proceeds for corporate purposes.
