Cloudflare (NET)

The Digital Tollbooth with a Moral Hazard

Cloudflare (NET) wants you to believe it is the Green Internet.

They claim their servers are more efficient than yours and that they are powering a better, safer web.

But look closer.

Their “Free Cash Flow” is erratic, their valuation is untethered from reality (34x Sales), and their “Social” impact involves shielding some of the web’s worst actors until public pressure forces their hand.

If you are buying Cloudflare as an ESG play, you are buying a Digital Tollbooth that is financially expensive and socially conflicted.

The Deep Dive (for paid subscribers):

• The Valuation Vertigo: Why paying 34x revenue for a company with barely positive cash flow is a dangerous game.

• The “Neutrality” Trap: How their stance on censorship creates a massive “S” risk that ratings agencies ignore.

• The Greenwashing Red Flag: Why “efficiency” doesn’t equal “sustainability” when you are fueling the exponential growth of data consumption.

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