Cloudflare: Stock Story

As with any investment, your capital is at risk.

Tell us about the company

Ben James: We've come a long way since the World Wide Web first launched in the mid-90s. It was a real game-changer for sharing information, but it was really slow and vulnerable to hackers. Thankfully, the internet is much faster today, but unfortunately, online threats have multiplied, which is where Cloudflare comes in. 

Founded in 2009, its first product used innovative computer programs to track and stop hackers. And since then, it's grown to become critical digital infrastructure for nearly a quarter of all internet traffic. The company focuses on making the internet faster, more secure, and more reliable for businesses of all sizes. It sees itself as the fabric that stitches all the different cloud computer providers together for its customers.

What makes this stock special?

What truly excites us about Cloudflare is its unique approach to solving complex internet challenges. While most companies view internet security as a cost centre, Cloudflare sees it as an opportunity for innovation. Its differentiator is a global network that turns traditional cybersecurity on its head. Instead of building higher walls, it's fundamentally reimagining how digital infrastructure can work.

Our conviction comes from its ability to solve problems other companies can't. Cloudflare's platform uses edge computing. Instead of computer processes being done in a centralized data centre miles away from the user, which takes time, Cloudflare's network allows businesses to run sophisticated applications closer to end users, reducing latency and improving performance. This isn't just an incremental improvement. It's a fundamental shift in how internet services can be delivered.

What could the future hold?

The future is really promising. Cloudflare's workers AI platform is positioning itself as a critical solution for deploying AI applications. It allows companies to run complex computations closer to where data is generated. Cloudflare's very flexible, low-cost distributed network appears to have an advantage here in what is a potentially massive opportunity. As cyber threats become more sophisticated, Cloudflare's holistic approach to security, protecting not just against attacks, but improving overall digital performance, gives it a significant competitive advantage.

As more businesses globally digitize, Cloudflare's international network becomes increasingly valuable, offering seamless, secure digital experiences across different regions and technological environments. Cloudflare isn't just adapting to the future, it's actively creating it. We believe this makes it a compelling long-term investment in the digital infrastructure landscape.

Risk factors

This communication was produced and approved in March 2025 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.

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