Hello, Liberty. Interesting comments on Cloudflare which made me curious, so I had a look. There are two sides of the story, deep technology and financial. I admit I didn't look into the technology in great detail; I only do that if the company passes a simple financial test. The past two years that financial testis has been critical, regardless of the underlying technology.
Adding a different perspective to the technological view: Cloudflare has high debt and seems to run on a fragile edge. It needs increasing Capex to grow. Operating cash flow would be good, but Capex diminishes greatly the company's ability to pay back debt, which is $1.57b. The net cash of $80m seems too thin, too risky, especially in this time of rising interest rates.
Hello, Liberty. Interesting comments on Cloudflare which made me curious, so I had a look. There are two sides of the story, deep technology and financial. I admit I didn't look into the technology in great detail; I only do that if the company passes a simple financial test. The past two years that financial testis has been critical, regardless of the underlying technology.
Adding a different perspective to the technological view: Cloudflare has high debt and seems to run on a fragile edge. It needs increasing Capex to grow. Operating cash flow would be good, but Capex diminishes greatly the company's ability to pay back debt, which is $1.57b. The net cash of $80m seems too thin, too risky, especially in this time of rising interest rates.
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Hi Liberty,
What sources would you recommend for understanding Cloudflare?