Cloudflare, Inc.

Key Points
Palantir stock has enjoyed abnormally high returns throughout the artificial intelligence (AI) revolution thanks to its impressive penetration across the public and private sectors.
Over the last few years, Palantir stock has risen following an earnings report.
While this would suggest the stock is poised for more near-term gains, a long-term view of historical trends indicates what could be in store for investors who chase Palantir's current momentum.
Earnings season has arrived, and as usual, growth investors have their eyes on all things related to artificial intelligence (AI). On Nov. 3, data analytics specialist Palantir Technologies (NASDAQ: PLTR) will publish financial and operating results for the third quarter.
It's been almost exactly three years since OpenAI commercially launched ChatGPT, igniting the AI revolution as we know it. In that time frame, shares of Palantir have gone absolutely parabolic -- soaring by nearly 2,400%, handily topping both the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC).
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Let's dig into why Palantir has become a darling of the AI boom and assess what investors should be on the lookout for. Is Palantir stock a good buy right now?
Why is Palantir stock rising?
At its core, Palantir developed a host of AI-powered software suites -- dubbed Foundry, Gotham, and Apollo. Together, these tools comprise the company's Artificial Intelligence Platform (AIP), which has become one of the core pieces of software infrastructure deployed by both government agencies and large private enterprises.
Over the last three years, Palantir has proven that it can compete head-to-head with direct competitors like C3.ai, as well as larger incumbent software vendors such as Salesforce and SAP.
Just this year alone, Palantir has won a number of high-profile contracts in the public sector. Most notably, the company recently won a deal with the U.S. Army worth up to $10 billion over the next 10 years -- providing Palantir with an enviable degree of revenue visibility in a heated AI software landscape.
To drive home how strategically important Palantir is for the Department of Defense (DOD), consider that the U.S. military also expanded an existing contract by nearly $800 million -- bringing the total deal value to $1.3 billion.
Palantir is thriving beyond the public sector, too. Some of the company's more interesting collaborations in the private sector hail from electric vertical takeoff and landing (eVTOL) manufacturer Archer Aviation, as well as telecommunications company Lumen Technologies.
While Archer and Lumen are both considered relatively small in comparison to legacy providers in their respective industries, I am encouraged by Palantir's willingness to partner with next-generation companies working to bring much-needed technological innovation to antiquated sectors.
Palantir's strong traction and blistering pace of new customer acquisition has excited investors, particularly in the retail community. As such, Palantir's share price has climbed exponentially higher in tandem with AI euphoria.
How does Palantir stock typically move following an earnings report?
In the chart below, I've illustrated Palantir's stock price movement over the last three years. The purple circles with the letter "E" in the center represent earnings reports. As the trends below clearly show, Palantir stock generally experiences outsize momentum following an earnings report.
Considering the company is accelerating both revenue and profits -- combined with a track record of beating and raising financial guidance -- along with the overly optimistic, perhaps even hubristic, rhetoric of CEO Alex Karp, it's no wonder that Palantir stock has been on such a joyride.
Is Palantir stock a good buy?
If you bought Palantir stock over the last three years, congratulations. Yet while the stock has shown unrelenting resiliency throughout the AI revolution, does that make it a good buy?
Per the analysis above, Palantir's price-to-sales (P/S) ratio of 136 is multiples higher than any of its peers in the software landscape. The stock is undeniably trading at a premium, and that leads me to my next point.
During the peak of the dot-com bubble in the late 1990s, the P/S ratios of internet darlings such as Microsoft, Amazon, and Cisco Systems peaked in the range of 30 to 40. Per the graphic above, Palantir trades in a completely different universe compared to those levels.
The disparity between Palantir's current premium relative to prior bubble stocks makes me think the company's valuation is not only frothy, but unsustainable. Ultimately, I think Palantir stock is due for a correction sooner than many investors may be anticipating.
I'm not alone in this view, either. Among the 25 sell-side analysts on Wall Street who cover Palantir, 17 have a rating of hold on the stock.
The important nuance to understand here is that if you only look at history through Palantir's lens, the stock would appear as a no-brainer right now -- ripe for even more profits. But that doesn't mean you should buy the stock.
By taking into account a more thorough analytical download, history indicates that hot stocks and emerging themes eventually normalize. For this reason, prudent investors understand that they should wait for a more reasonable entry point in Palantir stock -- or risk experiencing unwanted volatility in their portfolios.
Should you invest $1,000 in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,287!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,173,807!*
Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Annie Dean, a Vice President at Atlassian, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Amazon, Microsoft, and Palantir Technologies. The Motley Fool has positions in and recommends Amazon, Atlassian, Cisco Systems, Cloudflare, CrowdStrike, Datadog, Microsoft, MongoDB, Palantir Technologies, Salesforce, ServiceNow, Snowflake, and Workday. The Motley Fool recommends C3.ai and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Palantir Stock Before Nov. 3? History Offers a Clear Answer.

Below is Validea's guru fundamental report for CLOUDFLARE INC (NET). Of the 22 guru strategies we follow, NET rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
CLOUDFLARE INC (NET) is a large-cap growth stock in the Business Services industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of CLOUDFLARE INC
More Information on Partha Mohanram
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NET Quantitative Stock Analysis

Cloudflare NET is scheduled to report third-quarter 2025 results on Oct. 30, 2025.
Cloudflare anticipates revenues between $543.5 million and $544.5 million for third-quarter 2025. The Zacks Consensus Estimate for NET’s third-quarter revenues is pegged at $544.1 million, indicating year-over-year growth of 26.5%.
For the third quarter, the company expects non-GAAP earnings of 23 cents per share. The Zacks Consensus Estimate for NET’s third-quarter earnings is pegged at 23 cents per share, suggesting growth of 15% from the same quarter last year. The consensus mark for earnings has remained unchanged over the past 60 days.
Cloudflare’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while matching the same on one occasion, the average surprise being 8.34%.
Cloudflare, Inc. Price and EPS Surprise
Factors Likely to Influence Cloudflare’s Q3 Results
Cloudflare’s third-quarter results are likely to benefit from enterprises transitioning from traditional firewall and VPN-based cybersecurity solutions to the zero-trust approach. The company’s performance is expected to have benefited from a rise in the number of high-value contracts.
Cloudflare’s revenues are expected to have been boosted by its aggressive global expansion outside the United States. It is worth mentioning that the company generated approximately 50% of its 2024 revenues outside the United States. In the second quarter of 2025, Cloudflare reported that it had relied more on sales channels like PLG; but now, as the enterprise sales motion is clicking DDoS, WAF, and DNS, Cloudflare is set to benefit from it.
A diversified clientele is likely to have boosted Cloudflare’s third-quarter top line. Cloudflare had 265,929 paying customers at the end of the second quarter, up 27% year over year. It added 185 new customers during the quarter who contributed more than $100,000 in annual revenues. The total count of such customers reached 3,712 at the end of the quarter. This trend is expected to have continued in the to-be-reported quarter as well, backed by the increasing demand for NET’s cloud-based offerings amid the continuing digitalization trend.
Furthermore, growth in Cloudflare’s Workers AI inference and AI Gateway requests might have contributed to the top line in the to-be-reported quarter. Rising adoption of its Model Context Protocol server by a growing number of companies is also a tailwind.
However, amid the ongoing geopolitical and macroeconomic challenges, Cloudflare is facing difficulties in closing large deals in the pipeline, affecting its revenue recognition. These challenges stem from customer cautiousness in their IT spending and vendor onboarding due to recent policy measures of the United States. This is expected to have negatively impacted the company’s top-line growth in the to-be-reported quarter.
Earnings Whispers for Cloudflare
Our proven model does not conclusively predict an earnings beat for Cloudflare this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though Cloudflare carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Reddit Inc. RDDT has an Earnings ESP of +20.17% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is set to report third-quarter 2025 results on Oct. 30. The Zacks Consensus Estimate for RDDT’s third-quarter earnings is pegged at 52 cents per share, up by a cent over the past 60 days, indicating an increase of 225% from the year-ago quarter’s reported figure.
Meta Platforms META has an Earnings ESP of +3.03% and sports a Zacks Rank #2 at present.
Meta Platforms is slated to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for META’s third-quarter 2025 earnings is pegged at $6.61 per share, up by 3 cents over the past seven days, indicating a rise of 9.6% from the year-ago quarter’s reported figure.
Cognizant Technology Solutions CTSH has an Earnings ESP of +1.54% and carries a Zacks Rank #2 at present.
It is set to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for NXPI’s third-quarter earnings is pegged at $1.29 per share, unchanged over the past 60 days, indicating an increase of 3.2% from the year-ago quarter’s reported figure.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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Reddit Inc. (RDDT) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cloudflare to Post Q3 Earnings: What's in Store for the Stock?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Capital Group Growth ETF (Symbol: CGGR) where we have detected an approximate $284.6 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 382,600,000 to 389,000,000). Among the largest underlying components of CGGR, in trading today CloudFlare Inc (Symbol: NET) is down about 0.4%, TransDigm Group Inc (Symbol: TDG) is down about 0.3%, and Intuitive Surgical Inc (Symbol: ISRG) is higher by about 16.7%. For a complete list of holdings, visit the CGGR Holdings page » The chart below shows the one year price performance of CGGR, versus its 200 day moving average:
Looking at the chart above, CGGR's low point in its 52 week range is $29.23 per share, with $44.7099 as the 52 week high point — that compares with a last trade of $44.33. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
ZBIO Average Annual Return
CAH YTD Return
Top Ten Hedge Funds Holding MMT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Inflow Detected - CGGR, NET, TDG, ISRG

Key Points
Unprecedented demand for AI chips has propelled Nvidia to become the world's most valuable company.
Palantir has proven that it can compete with the largest software developers in the market.
While Nvidia and Palantir should both continue to benefit from AI tailwinds, each faces the risk of a valuation de-rating in coming years.
Over the past three years, Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) have become two of the most recognizable names in artificial intelligence (AI).
Nvidia powers the infrastructure layer of the AI revolution, while Palantir dominates the software side of data integration and analytics. Yet as investors look toward the future, another company may quietly surpass them both: Taiwan Semiconductor Manufacturing (NYSE: TSM). As the world's largest chip foundry, TSMC is the true backbone of AI computing -- fabricating nearly every advanced processor that drives today's most demanding workloads.
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While Palantir and Nvidia built remarkable businesses, the next five years could mark a turning point where TSMC's strategic position and scale advantage propel it toward becoming the most valuable technology company in the world.
Why Palantir's valuation could normalize over the next five years
Palantir captivated investors with its vision of AI-powered decision intelligence. Its platforms -- Foundry, Gotham, and Apollo -- enable organizations to analyze vast data sets and automate complex workflows. Yet the AI software landscape is becoming increasingly crowded. Enterprise giants like Salesforce, ServiceNow, Snowflake, and Databricks are embedding generative AI directly into their ecosystems, offering comparable capabilities with broader integrations.
At the same time, the rise of open-source large language models (LLMs) is lowering barriers to entry. Companies no longer need to depend exclusively on proprietary stacks to build and deploy AI applications. Moreover, the economics of software differ markedly from hardware: While software can scale more efficiently, intensifying competition often compresses pricing and contract values over time.
As a result, the AI software market may continue to grow steadily -- but likely not at the blistering pace of semiconductors, where physical capacity and manufacturing expertise remain scarce.
Palantir's current valuation already bakes in lofty expectations, leaving limited margin for error. As AI capabilities become more commoditized and rivals gain traction, a valuation normalization toward traditional software multiples wouldn't be surprising.
Palantir may still grow revenue and profits, but its market capitalization could stagnate -- or even decline -- relative to the broader AI ecosystem.
Nvidia's growth engine is still roaring, but deceleration could be inevitable
Nvidia's dominance in AI chips is unquestioned. Its GPUs remain the industry's gold standard for both training and inference, while its proprietary CUDA software ecosystem provides a formidable competitive moat. These advantages have propelled Nvidia to become the world's most valuable company, surpassing Apple and Microsoft in recent years.
Nvidia's data center revenue and free cash flow have expanded at an unprecedented pace -- but growth of this magnitude is difficult to sustain.
As the AI infrastructure cycle matures, spending is likely to shift from large-scale buildouts toward efficiency and optimization -- favoring incremental upgrades over massive new deployments.
Competition is also heating up. Advanced Micro Devices is securing high-profile wins for its upcoming MI400 series accelerators, while hyperscalers such as Amazon, Alphabet, Microsoft, and Meta Platforms are developing custom silicon tailored for their own workloads. Over time, these alternatives should gradually reduce industry dependence on Nvidia's GPUs, introducing more balance -- and perhaps more volatility -- into the AI hardware landscape.
Why Taiwan Semiconductor could become the world's most valuable AI stock
While Nvidia designs the chips that power AI, TSMC builds them -- and that distinction is critical. TSMC controls nearly 90% of the world's advanced processor market, manufacturing the most sophisticated nodes available today. Major AI players -- Nvidia, AMD, Apple, and Tesla -- rely on its unparalleled precision and manufacturing expertise.
What makes TSMC especially compelling is its enduring position at the center of global AI supply chains. The company is expanding its footprint with new fabrication plants in the U.S., Japan, and Germany -- reducing reliance on Taiwan while aligning more closely with Western industrial policy. This geographic diversification not only mitigates geopolitical risk, but also strengthens TSMC's strategic importance to the global economy.
Even as Intel works to reestablish itself as a foundry contender, matching TSMC's scale, efficiency, and customer trust will take years. Large customers are unlikely to migrate quickly, as switching fabrication partners introduces massive design, cost, and performance risks.
As AI demand accelerates, the most constrained resource in the industry is fabrication capacity -- precisely where TSMC sits. With a gross margin above 50%, unmatched technology leadership, and a robust customer pipeline, TSMC is positioned to see its earnings and valuation multiply as global AI adoption continues to compound.
Can TSMC realistically surpass Nvidia and Palantir combined?
Let's be clear: The ideas explored in this article are theoretical -- but far from implausible. Nvidia currently commands a market capitalization of about $4.5 trillion, while Palantir's stands near $420 billion. For TSMC -- which is valued around $1.5 trillion -- to be on par with their combined worth, it would need to compound at roughly 27% annually for the next five years -- ambitious, but not inconceivable.
The caveat, of course, is that the math above assumes both Palantir and Nvidia maintain their current valuations. In reality, that's unlikely. As noted earlier, there's a strong case that Palantir's valuation could contract by 2030. Nvidia, on the other hand, has multiple catalysts -- from next-generation GPU launches to expanding data center demand -- that could continue to propel its market value higher.
This is where nuance enters the picture. Nvidia depends heavily on TSMC for chip manufacturing, and that relationship cuts both ways. If Nvidia's explosive growth does begin to normalize, Taiwan Semiconductor remains positioned to benefit from the broader secular theme of semiconductor growth from other designers -- meaning it's conceivable that TSMC could see its own valuation rerate upward at a faster pace relative to Nvidia.
Predicting that TSMC will be worth more than Nvidia and Palantir combined by the end of the decade is undeniably bold -- some may even say that it's unrealistic. To me, the scenario isn't entirely a fantasy.
The subtlety is that a lot must go right: Global AI infrastructure buildouts must stay on track, supply chains must remain resilient, and China-Taiwan tensions must avoid escalation.
If those conditions hold -- and AI continues to redefine computing at a foundational level -- TSMC's near-monopoly on the world's most advanced chips could give it unmatched strategic leverage over the entire AI ecosystem. Under that scenario, a valuation rivaling -- or even exceeding -- today's market leaders may be entirely within reach.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $667,945!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,558!*
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Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Cloudflare, CrowdStrike, Datadog, Intel, Meta Platforms, Microsoft, MongoDB, Nvidia, Palantir Technologies, Salesforce, ServiceNow, Snowflake, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: 1 AI Stock Could Be Worth More Than Nvidia and Palantir Technologies Combined by 2030

The AI Infrastructure Opportunity

Investors have high expectations for the cloud and AI industries. They both promise to transform the technology landscape, and should bring significant returns to investors along the way.
However, the success of both will be next to impossible without adequate cybersecurity. Investors have not ignored this fact, which is why many of the top stocks in this industry trade at a significant premium.
Still, those premiums are not so high that investors cannot buy shares of some of them now and profit handsomely over the next decade. In particular, I'd suggest considering opening positions in these cybersecurity stocks.
CrowdStrike
Some investors may understandably look at CrowdStrike (NASDAQ: CRWD) with a wary eye. A global IT outage set off by an update to its security software for machines running Microsoft's Windows operating system sent its stock reeling. The fact that even after that event, its price-to-sales (P/S) ratio has rebounded to 24 speaks to how expensive this stock has become.
To its credit, CrowdStrike quickly took responsibility for the issue and issued a fix rapidly. This seems to have helped maintain confidence in the company, and clients have not fled its platform in significant numbers.
Although investors know it best for its endpoint security offerings, CrowdStrike's Falcon platform offers an array of types of security products. As a result, the company's average customer subscribes to seven of its modules. Moreover, many companies prefer to simplify their tech relationships by having a single company handle all their cybersecurity needs. That trend appears to be helping CrowdStrike.
The IT outage occurred in July, near the end of the company's fiscal 2025 second quarter. Hence, it didn't register meaningfully on the $964 million in revenue that it booked for that quarter (which ended July 31). The top line still rose 32% year over year. Also, slower expense growth helped it book $47 million in net income for fiscal Q2, far surpassing its $8.5 million profit in the year-ago quarter.
Shareholders will get more of an idea about how the outage is impacting CrowdStrike's financials when it releases its fiscal Q3 numbers on Nov. 26. However, investors seemed to have largely moved on, suggesting that they feel it probably won't derail CrowdStrike's long-term growth story.
SentinelOne
Like CrowdStrike, SentinelOne (NYSE: S) specializes in endpoint security. However, it stands out in other ways, namely by employing an AI-first approach. Unlike many other platforms, it does not rely on the discovery of malware signatures. Rather, it monitors behavior to identify threats, which can give it a competitive advantage.
Additionally, its platform is scalable across multiple third-party products and services, making it easily adaptable to customers' networks. SentinelOne has also designed its software to be user-friendly, making it simple for users to deploy, monitor threats, and conduct investigations.
Its software has become increasingly popular. In its fiscal 2025 second quarter (which ended July 31), its revenue rose 33% year over year to $199 million. While it has not achieved profitability yet, it's been holding the line on costs, so operating expenses rose by only 11%. That left it with a net loss of $69 million compared to $90 million in the prior-year period.
Admittedly, the stock has struggled this year. In its fiscal 2024, its revenue growth was 47%, so its current growth rate reflects a significant slowdown. Nonetheless, its P/S ratio of 11 might be attractive to investors looking for lower-cost alternatives in the cybersecurity space, which could put SentinelOne stock on track for significant growth.
Zscaler (NASDAQ: ZS) is another security company well-positioned to capitalize on organizations' growing need for cybersecurity. Like CrowdStrike, it offers numerous security products. However, while the company touts a cloud-native infrastructure, its specialty is zero-trust security.
A zero-trust system starts from the assumption that anyone attempting to enter a network is an attacker. Hence, every user must prove their credentials through criteria such as specific devices or locations. One's role in the organization usually determines precisely what areas of the network the person has access to, and to what degree. This can limit the damage an attacker can do with a single set of compromised credentials.
This approach helped Zscaler boost its revenue by 30% to $593 million in the fourth quarter of its fiscal 2024, which ended July 31. Its revenue growth tracked slightly ahead of its expense growth, allowing it to cut its net loss to $15 million from $31 million in the prior-year quarter.
As with its peers, a slowing growth rate from past years soured investors on Zscaler stock. Nonetheless, the cybersecurity industry is on track for continued expansion, so even if growth rates slow down, Zscaler will likely benefit from robust revenue increases for years to come. Considering its expected growth, its 14 P/S ratio probably shouldn't douse investors' interest in Zscaler stock.
Should you invest $1,000 in CrowdStrike right now?
Before you buy stock in CrowdStrike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CrowdStrike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $894,029!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of November 18, 2024
Will Healy has positions in CrowdStrike and Zscaler. The Motley Fool has positions in and recommends CrowdStrike, Microsoft, and Zscaler. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Cybersecurity Stocks You Can Buy and Hold for the Next Decade

Wednesday, October 8, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including SAP SE (SAP), Novartis AG (NVS) and Philip Morris International Inc. (PM), as well as two micro-cap stocks, ImmuCell Corp. (ICCC) and ClearOne, Inc. (CLRO). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Up Ahead of Fed Minutes Release
Today's Featured Research Reports
Shares of SAP have gained +20.4% over the past year against the Zacks Computer - Software industry’s gain of +22.7%. The company’s increasing Cloud ERP growth and disciplined cost management, coupled with widespread adoption of its Rise with SAP and Grow with SAP solutions, are driving SAP’s performance. AI innovation, streamlined operations and a strong transformation program, with expanding Business AI adoption and productivity gains across all areas, are tailwinds.
Despite global headwinds, SAP reaffirmed its 2025 outlook, expecting cloud revenues of €21.6-€21.9 billion, up 26-28% at cc. Its ability to generate ample free cash flow anchors strategic investment decisions. Operating profit is cushioned by higher cloud revenues, better cloud margins and lower share-based compensation costs.
However, the weak software license and services business hurt it. SAP faces revenue swings due to long sales cycles, complex deals, budget shifts and linked software-service sales.
(You can read the full research report on SAP here >>>)
Novartis’ shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+16.4% vs. -6.4%). The company’s performance has been good in the last few quarters. The company raised its annual guidance for operating income along with second-quarter results. Novartis has a strong and diverse portfolio with drugs like Kisqali, Kesimpta, Pluvicto and Leqvio.
The uptake of Pluvicto and Scemblix has been outstanding and propels top-line growth. Our model estimates for Pluvicto and Kisqali indicate a CAGR of 43.7% and 41.2%, respectively, over the next three years. Approval of new drugs and label expansion of existing drugs should enable Novartis to offset the adverse impacts of the generic competition for key drugs.
The recent spate of acquisitions and collaborations has further strengthened its pipeline. However, one of the top drugs, Entresto, is likely to lose patent protection.
(You can read the full research report on Novartis here >>>)
Shares of Philip Morris have gained +33.4% over the past year against the Zacks Tobacco industry’s gain of +42.3%. The company has been benefiting from strong pricing power and an expanding smoke-free portfolio. In the second quarter of 2025, Philip Morris' net revenues increased 7.1% year over year, driven by higher combustible tobacco pricing and increased smoke-free product volumes.
The company has been making significant progress with its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. Philip Morris has implemented significant cost-saving measures and strategic initiatives to achieve its long-term financial goals.
For 2025, adjusted earnings per share (EPS) are likely to be $7.43-$7.56, indicating a 13-15% year-over-year increase. However, Philip Morris faces premium valuation, currency volatility pressures and stringent global tobacco regulations impacting traditional product demand.
(You can read the full research report on Philip Morris here >>>)
ImmuCell’s shares have outperformed the Zacks Medical - Products industry over the past year (+76.7% vs. +0.7%). This microcap company with a market capitalization of $58.35 million is positioned for strong growth driven by two core product lines and improving fundamentals. Re-Tain targets the $2 billion U.S. mastitis market as the only non-antibiotic treatment with no milk discard or slaughter restrictions, addressing an unmet clinical need and pending full FDA approval.
First Defense, led by Tri-Shield, dominates calf-level scours prevention with 48% market share and expanding reach through new formats and channels. Restored manufacturing capacity supports over $30 million in annual revenue, enabling 18% year-over-year sales growth and margin expansion to 44%.
With EBITDA recovery, positive cash flow, and a strengthened balance sheet following debt refinancing, ImmuCell has the financial flexibility to sustain growth, fund innovation, and capitalize on Re-Tain’s regulatory and commercial potential in underserved animal health markets.
(You can read the full research report on ImmuCell here >>>)
Shares of ClearOne have underperformed the Zacks Communication - Components industry over the past year (-33.4% vs. +85.2%). This microcap company with a market capitalization of $10 million has its profitability outlook remains structurally weak as operating loss accelerates. The second-quarter 2025 GAAP net loss widened 62% year over year to $4.6M due to 49% higher opex and a (12.1%) gross margin amid declining revenues (-17% year over year) and limited cost leverage.
Liquidity pressures deepened, with the operating cash flow at $(2.6 M) and working capital declining to $9.4M despite $4M financing, constraining production and delaying launches. The gross margin erosion reflects unabsorbed overhead and production pauses, while international sales plunged 73% in APAC and 40% in EMEA.
Management’s going-concern warning underscores strategic uncertainty as the firm pursues an asset sale. Elevated tariffs, inventory overhangs and weak pricing power compound structural risks, leaving limited near-term recovery potential.
(You can read the full research report on ClearOne here >>>)
Other noteworthy reports we are featuring today include Uber Technologies, Inc. (UBER), Robinhood Markets, Inc. (HOOD) and Cloudflare, Inc. (NET).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
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Uber Continues to Benefit From Delivery Business Amid High Debt
The Zacks Analyst likes Uber's efforts to expand its Delivery operations in response to the surge in business. A debt load above industry levels and currency-related woes act as headwinds.
Product Expansion, Trading Revenues to Aid Robinhood (HOOD)
Per the Zacks analyst, strategic acquisitions, product diversification efforts, solid trading revenues and a robust liquidity position will likely aid Robinhood's financials.
Cloudflare (NET) Rides on Product Strength, Acquisitions
Per the Zacks analyst, Cloudflare is gaining from solid contributions of its growth-oriented products, primarily the Cloudflare One platform. Acquisitions like Kivera and BastionZero are a positive.
Investments Aid American Electric (AEP) Amid Rising Interest Expense
Per the Zacks analyst, investments in transmission projects and renewable expansion is likely to boost American Electric's revenues. Yet, rising interest expense remains a concern for the stock.
Permian Basin Presence, JV Aid Plains All American (PAA)
Per the Zacks analyst, Plains All American benefits from rise in production from the Permian region, with a revival in demand for midstream services. Its joint ventures are expected to drive earnings.
Cologuard Growth Aids Exact Sciences (EXAS), Cost Woes Stay
The Zacks analyst is impressed with Exact Sciences' Cologuard momentum, led by rescreens, care gap programs, and better commercial execution. Heightened costs from macroeconomic issues may pose risks.
Western Union (WU) to Gain From Global Strategy & Buyouts
The Zacks Analyst expects Western Union's Global Strategy to drive efficiency and profitability. The Intermex acquisition will strengthen its position in high-growth remittance corridors.
New Upgrades
Fair Isaac (FICO) Benefits From Strong Scores and Software Growth
Per the Zacks Analyst Fair Isaac is benefiting from strong financial performance driven by robust growth in its Scores and Software segments.
Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
According to the Zacks analyst, Albemarle should gain from its actions to boost its global lithium derivative capacity. Its cost-saving actions will also support margins.
Flowserve Pump Division Segment to Benefit Flowserve (FLS)
Per the Zacks analyst, Flowserve will gain from strength in the Flowserve Pump Division segment, driven by solid momentum in aftermarket business. The company's shareholders add to its appeal.
New Downgrades
Murphy (MUSA) Struggles with High Debt and Low Cash Reserves
The Zacks analyst believes that Murphy USA's $2.1 billion debt and low cash levels expose the company to commodity price volatility, as evidenced by its 76.2% debt-to-capitalization ratio.
Altice (ATUS) Plagued by High Operating Costs, Waning Subscriber Base
Per the Zacks analyst, Altice is likely to be plagued by high operating costs for infrastructure upgrades and maintenance and a declining subscriber base owing to macroeconomic woes.
Affordability Risks & High Expenses Hurting Lennar's (LEN) Growth
Per the Zacks analyst, Lennar's prospects are hurting from the softness in the housing market due to ongoing affordability challenges. Also, increased costs and expenses are hurting its margins.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ClearOne, Inc. (CLRO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Reports for SAP, Novartis & Philip Morris

Key Points
Nebius Group is an AI hyperscaler with subsidiaries focusing on autonomous vehicles and online technology education.
It possesses several traits that millionaire-maker stocks often have.
Whether or not Nebius is a millionaire maker, it could make investors a lot of money over the long term.
What's the hottest artificial intelligence (AI) stock on the market right now with a market cap of at least $10 billion? I'll give you a hint: It's not Nvidia (NASDAQ: NVDA) or Palantir Technologies (NASDAQ: PLTR). It's not CoreWeave (NASDAQ: CRWV), either.
No, the top-performing large-cap AI stock so far in 2025 is one that many investors might be unfamiliar with. Nebius Group (NASDAQ: NBIS) has delivered a sizzling year-to-date gain of over 350%. I think it's without question the kind of stock that can make investors a lot of money over time. But can investing $10,000 in Nebius Group stock make you a millionaire?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
What Nebius Group does
Nebius Group's primary focus is on AI infrastructure. It's one of a handful of hyperscalers with the capacity to handle massive AI processing loads. The company operates seven large-scale GPU clusters across Europe, the U.S., and the Middle East.
Several big-name customers use Nebius for their AI applications. Content delivery network and cybersecurity company Cloudflare (NYSE: NET) is one. E-commerce star Shopify (NASDAQ: SHOP) is another notable example. However, Nebius also serves many AI start-ups and rising stars.
While AI infrastructure is Nebius Group's biggest moneymaker, by far, it has other businesses. The company's Avride subsidiary develops autonomous driving technology. It's working with Uber (NYSE: UBER) to deliver food from restaurants using self-driving robots and to launch a robotaxi service in Dallas. Nebius' TripleTen subsidiary operates an online education platform for technology workers to improve their skills.
In addition, Nebius has equity stakes in two other companies: Toloka and ClickHouse. Toloka provides curated data for use by AI agents and for developing AI models. ClickHouse markets an open-source database management platform.
Characteristics of a millionaire-maker
Those rare stocks that can turn $10,000 into $1 million often share similar characteristics. I think Nebius possesses several of those millionaire-maker traits.
Perhaps most importantly, the company is an early entrant in a nascent market with explosive growth potential. To be sure, Nebius isn't the only AI hyperscaler. It's not the biggest, either. However, I agree with what Nebius CEO Arkady Volozh wrote to shareholders recently, "Outside of a handful of big tech companies, only a few newcomers have both the technological expertise and the multi-billion-dollar scale to play in this
field. Nebius is one of them."
Millionaire-maker stocks must deliver ginormous revenue growth. Nebius checks off that box in spades. In the second quarter of 2025, the company's revenue skyrocketed 625% year over year and 106% quarter over quarter.
The companies that help investors make $1 million or more must also be able to quickly adapt to changes. That requires management with vision and competence. Volozh definitely fits the bill.
He founded Yandex in 1997. The company ultimately became Russia's largest search engine provider and ride-sharing service operator. However, following the Russian invasion of Ukraine and the subsequent economic sanctions, Volozh spearheaded the divestiture of all Russian holdings and refocused the renamed Nebius Group on AI infrastructure.
A difficult task
Many stocks offer the opportunity to be multibaggers. However, to grow $10,000 into $1 million requires that a stock deliver a 100x return. That's a difficult task, to say the least. Is Nebius Group up to the challenge? Maybe, but I have to admit the odds are stacked against it.
Nebius Group's market cap currently stands around $32 billion. The company would have to be worth $3.2 trillion for its stock to be a millionaire-maker (assuming an initial investment of $10,000). Only three companies on the planet have a market cap that big today. Nebius may join the club over the next 20 years, but I wouldn't bet the farm on it.
That doesn't mean, though, that Nebius isn't a great stock to buy. I think the stock has tremendous growth prospects over the rest of this decade and beyond. Whether or not Nebius is a millionaire maker, it could make investors a lot of money over the long term.
Should you invest $1,000 in Nebius Group right now?
Before you buy stock in Nebius Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nebius Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $621,976!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,085!*
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare, Nvidia, Palantir Technologies, Shopify, and Uber Technologies. The Motley Fool recommends Nebius Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Investing $10,000 in Nebius Group Stock Make You a Millionaire?

Cloudflare NET and Coinbase COIN have teamed up to launch the x402 Foundation, with the aim of creating an open Internet standard for digital payments.
The x402 standard to be launched with Coinbase will enable website owners, developers, and creators to send and receive payments across geographies, currencies, and payment methods seamlessly. Cloudflare is anticipating that this will help the world take a step toward Internet-native money.
More importantly, the new standard to be launched in collaboration with Coinbase is expected to pave the way toward a flexible future for monetizing APIs, content, and autonomous transactions. This new standard will add another offering to the portfolio of Cloudflare, which has already launched multiple products in 2025.
In 2025, NET introduced multiple products, including Cloudflare for AI, Cloudforce One threat events platform, Quantum-safe Zero Trust support, One-Click Content Credentials and connected AI Security Posture Management into its Zero Trust platform.
These new offerings have increased Cloudflare’s capabilities to include integrated solutions for Firewall for AI and AI Gateway, post-quantum cryptography, while making the Internet a safer place. However, Cloudflare suffers from a few challenges.
NET Faces Competitive Pressure and Shrinking Margins
One of the many reasons why Cloudflare is heavily investing in developing new products and features is due to competition. Cloudflare operates in a highly competitive environment. In its content delivery space, companies like Amazon AMZN, Akamai Technology and Fastly compete with Cloudflare. While in the cybersecurity space, a range of competitors like Palo Alto Networks and Zscaler ZS compete with it.
Amazon also competes with its developer platform through its general-purpose serverless and container-based edge deployment solutions. Alphabet is implementing AI in its Cloud Run solution, Amazon’s AWS Lambda & Lambda@Edge leverage deep integrations with AWS services, robust tooling, and a mature developer base.
Furthermore, Zscaler’s presence across multiple verticals, including SASE and zero trust, along with its rapid market expansion, puts Cloudflare under pressure of market expansion and product innovation. To survive in the highly competitive market, each player must continually invest in broadening its capabilities, leading to higher investment in research and development and sales and marketing, causing shrinking margins.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.