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Comment by oceanplexian | Hacker News Reader

Look at their financials, CloudFlare might be popular among the HN crowd but the stock is massively overvalued. At the end of the day they are a commodity CDN that somehow can’t run a profitable business.

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I did look at their financials - 77% gross margin with 30% revenue growth. Much higher than “commodity cdn” can command. If they cut marketing and r&d they’d be bagging half a b a year in profit but they are investing in growth as they should because it’s working

Cloud flare will still be the internet in ten years, while Amazon will just be Walmart,

Amazon is the internet too. The us-east-1 outage in 2023 took down a lot of stuff.

AWS is making $100+bn per year and growing at about 20% per year.

Good job, "Walmart"!

And, that's a dis, why?

WalMart has a market cap of almost 600 Billion dollars. Weird dis.

It’s even weirder since Amazon is at $2T, and has long been worth far more than Walmart.

Well, not weird, you got it exactly! Thats the point :) It would be "just Walmart"

Strange take on AWS.

I think GP's point is that wiz's valuation makes even less sense.

cloudflare is a commodity CDN, amazon is an ecommerce site

Because they have so many using their cdn functionality they can upsell them on other products such as domain registration, video streaming, s3, etc

Cloudflare makes no money on domain registration.

Yet.

Yeah nah... they have great products and their primary business is allowing them to enter markets where other companies can't compete. The valuation is based on potential not the business as it stands today.

And to your point they are popular with the HN crowd which is usually a strong indicator.

They have a lot of products.

And now with their bad hiring practices and shady business deals they might not be popular among HN crowd for long too.

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