Cloudflare Soars on Barclays’ Bullish Initiation: AI and Cybersecurity Demand Fuel 27% Growth Outlook

Cloudflare shares climbed 2.26% to $201.65 after Barclays launched coverage with an Overweight rating and $235 price target. The network infrastructure provider powers 20% of global internet traffic—a structural advantage as enterprises prioritize AI-ready security and edge computing solutions.

Analysts highlight Cloudflare’s Acts 2 and 3 product suites as key growth drivers, now scaling faster than legacy offerings. The firm expects 27%-30% annual revenue growth through 2028 as hybrid cloud deployments and zero-trust security frameworks dominate corporate IT budgets.

Market response reflects renewed appetite for premium-growth software stocks. Cloudflare’s homogeneous global architecture positions it to capture demand for distributed AI workloads—a sector where every 1% of internet traffic converted to revenue represents $2B in potential addressable market.