alt Hacker NewsThat analysis completely neglects growth.
Obviously you wouldn't pay 10x revenue if you expect revenue to be flat for the next 10 years.
No wonder that company no longer exists with a CEO that doesn't get that.
Replies
s-kymon • today at 6:45 PM
you're right on growth being excluded, which is why I said the analysis is imperfect.
bryanlarsen • today at 6:42 PM
Cloudflare's growth is capped to 100% of internet traffic. it's already at 20%.
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Cloudflare is now a mature company, they don't have a huge amount of room for growth, and no, they will never sit in front of the entire internet.
According to these figures, their growth is levelling off.
https://news.ycombinator.com/item?id=50382740
And nowhere near enough to sustain that valuation, particularly in a market which is near the end of a bull run.