NET - CloudFlare Inc Stock Price, Fair Value and News

72.44USD-1.69 (-2.28%)Market Closed

Market Summary

USD72.44-1.69

Market Closed

-2.28%

NET Alerts

6 major insider sales recently.

Big jump in Revenue (Y/Y)
Losses in recent quarter

NET Stock Price

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NET RSI Chart

NET Valuation

Market Cap

25.1B

Price/Earnings (Trailing)

-138.32

Price/Sales (Trailing)

18.11

EV/EBITDA

-744.04

Price/Free Cashflow

154.26

NET Price/Sales (Trailing)

NET Profitability

Operating Margin

76.78%

EBT Margin

-12.59%

Return on Equity

-22.76%

Return on Assets

-6.48%

Free Cashflow Yield

0.65%

NET Fundamentals

NET Revenue

Revenue (TTM)

1.4B

Rev. Growth (Yr)

30.47%

Rev. Growth (Qtr)

4.45%

NET Earnings

Earnings (TTM)

-181.4M

Earnings Growth (Yr)

6.67%

Earnings Growth (Qtr)

-27.55%

Breaking Down NET Revenue

52 Week Range

47.7976.07

(Low)(High)

Last 7 days

-15.2%

Last 30 days

-22.9%

Last 90 days

-11.1%

Trailing 12 Months

60.0%

How does NET drawdown profile look like?

NET Financial Health

Current Ratio

3.51

Debt/Equity

1.61

Debt/Cashflow

0.23

NET Investor Care

Shares Dilution (1Y)

2.48%

Diluted EPS (TTM)

-0.53

Historical Charts for Stock Metrics

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Net sales

Year	Q1	Q2	Q3	Q4
2024	1.4B	0	0	0
2023	1.1B	1.1B	1.2B	1.3B
2022	730.5M	812.6M	894.1M	975.2M
2021	477.9M	530.6M	588.8M	656.4M
2020	316.5M	348.8M	389.1M	431.1M
2019	216.3M	239.8M	263.4M	287.0M
2018	0	0	163.8M	192.7M
2017	0	0	0	134.9M

Get all data in R, Python etc through our Historical Stock Data APIs

Tracking the Latest Insider Buys and Sells of CloudFlare Inc

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
May 03, 2024	seifert thomas j	acquired	-	-	15,000	chief financial officer
May 03, 2024	seifert thomas j	sold	-1,109,480	73.9651	-15,000	chief financial officer
May 01, 2024	ledbetter carl	sold	-701,860	87.492	-8,022	-
May 01, 2024	kramer douglas james	sold	-264,360	88.12	-3,000	chief legal officer
May 01, 2024	kramer douglas james	acquired	-	-	3,000	chief legal officer
May 01, 2024	eitel maria s	sold	-605,825	88.12	-6,875	-
Apr 24, 2024	ledbetter carl	sold	-892,960	89.1622	-10,015	-
Apr 18, 2024	seifert thomas j	acquired	-	-	15,000	chief financial officer
Apr 18, 2024	zatlyn michelle	sold	-1,650,460	87.0727	-18,955	president and coo
Apr 18, 2024	seifert thomas j	sold	-1,305,250	87.0166	-15,000	chief financial officer

Which funds bought or sold NET recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
May 06, 2024	Advisory Services Network, LLC	sold off	-100	-182,256	-	-%
May 06, 2024	VitalStone Financial, LLC	new	-	16,000	16,000	0.01%
May 06, 2024	Empowered Funds, LLC	added	24.27	105,241	341,616	0.01%
May 06, 2024	Parallel Advisors, LLC	added	30.87	42,362	123,541	-%
May 06, 2024	Metis Global Partners, LLC	added	0.16	50,641	357,787	0.01%
May 06, 2024	HighTower Advisors, LLC	added	2.77	1,155,000	7,048,000	0.01%
May 06, 2024	Envestnet Portfolio Solutions, Inc.	added	0.05	119,912	853,266	-%
May 06, 2024	SG Americas Securities, LLC	added	302	1,917,000	2,438,000	0.01%
May 06, 2024	ORG Partners LLC	reduced	-98.48	-53,998	953	-%
May 06, 2024	Manchester Capital Management LLC	unchanged	-	10,666	76,109	0.01%

Are Funds Buying or Selling NET?

Are funds buying NET calls or puts?

Calls

Puts

No. of funds holding Calls - Puts

Net Call Options

No. of funds that own NET

No. of Funds

Unveiling CloudFlare Inc's Major ShareHolders

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 13, 2024	vanguard group inc	9.52%	28,159,189	SC 13G/A
Feb 13, 2024	sands capital management, llc	3.6%	10,593,642	SC 13G/A
Feb 12, 2024	prince matthew	9.3%	30,480,294	SC 13G/A
Feb 12, 2024	morgan stanley	9.9%	29,344,871	SC 13G/A
Feb 09, 2024	fmr llc	-	0	SC 13G/A
Feb 09, 2024	capital world investors	9.4%	27,791,766	SC 13G/A
Jan 30, 2024	baillie gifford & co	10.46%	30,938,677	SC 13G/A
Jan 29, 2024	blackrock inc.	5.6%	16,649,551	SC 13G/A
Jun 06, 2023	baillie gifford & co	11.03%	31,928,982	SC 13G/A
Feb 14, 2023	sands capital management, llc	5.4%	15,454,112	SC 13G

Recent SEC filings of CloudFlare Inc

View All Filings

Date Filed	Form Type	Document
May 06, 2024	144	Notice of Insider Sale Intent
May 06, 2024	4	Insider Trading
May 03, 2024	144	Notice of Insider Sale Intent
May 03, 2024	4	Insider Trading
May 02, 2024	10-Q	Quarterly Report
May 02, 2024	4	Insider Trading
May 02, 2024	4	Insider Trading
May 02, 2024	8-K	Current Report
May 01, 2024	144	Notice of Insider Sale Intent
May 01, 2024	144	Notice of Insider Sale Intent

Peers (Alternatives to CloudFlare Inc)

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MSFT	3.0T	236.6B	-3.84%	32.57%	35.29	12.85	13.97%	24.86%
ADBE	220.5B	19.9B	1.47%	43.08%	45.94	11.06	10.76%	1.35%
CRWD	74.6B	3.1B	-0.92%	136.08%	835.11	24.41	36.33%	148.75%
SQ	44.1B	22.9B	-7.22%	21.77%	88.59	1.93	23.28%	240.37%
AKAM	15.4B	3.8B	-4.30%	28.13%	28.13	4.04	5.40%	4.57%
FFIV	9.9B	2.8B	-12.51%	24.66%	19.79	3.54	0.20%	52.82%
MID-CAP
ALTR	7.1B	619.6M	1.87%	27.35%	742.16	11.48	7.11%	116.83%
HCP	6.4B	583.1M	27.04%	10.44%	-33.34	10.9	22.54%	30.49%
ACIW	3.8B	1.5B	10.88%	47.29%	25.9	2.56	6.51%	54.77%
APPN	2.3B	560.0M	-16.33%	-10.37%	-21.7	4.17	14.52%	34.67%
SMALL-CAP
CSGS	1.2B	1.2B	-13.79%	-13.91%	19.38	1.07	3.70%	18.24%
ATEN	1.2B	254.7M	15.48%	12.87%	25.25	4.53	-7.51%	2.74%
BAND	597.2M	634.3M	28.96%	99.38%	-20.46	0.94	9.43%	-197.31%
DTSS	18.7M	7.0M	-11.44%	-56.06%	-2.18	2.91	-55.73%	-45.27%
BLIN	12.5M	15.6M	-8.27%	32.61%	-1.25	0.8	-6.37%	-5256.07%

CloudFlare Inc News

Latest updates

CloudFlare Inc Earnings Report: Key Takeaways & Analysis

Income Statement (Last 12 Months)

(*) denotes actual numbers (not divided by Thousands)
Income Statement (Quarterly)																					(In Thousands)
Description	(%) Q/Q	2024Q1	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2019Q2	2019Q1
Revenue	4.4%	378,602,000	362,473,000	335,603,000	308,494,000	290,175,000	274,700,000	253,857,000	234,517,000	212,167,000	193,596,000	172,347,000	152,428,000	138,055,000	125,926,000	114,162,000	99,721,000	91,250,000	83,930,000	73,941,000	67,424,000	61,727,000
Cost Of Revenue	2.1%	85,038,000	83,283,000	78,069,000	75,221,000	70,432,000	67,788,000	61,967,000	55,804,000	47,051,000	42,496,000	37,525,000	35,029,000	32,084,000	29,065,000	27,005,000	24,164,000	20,821,000	18,198,000	16,033,000	14,832,000	14,360,000
Gross Profit	5.1%	293,564,000	279,190,000	257,534,000	233,273,000	219,743,000	206,912,000	191,890,000	178,713,000	165,116,000	151,100,000	134,822,000	117,399,000	105,971,000	96,861,000	87,157,000	75,557,000	70,429,000	65,732,000	57,908,000	52,592,000	47,367,000
Operating Expenses	8.1%	348,114,000	322,019,000	296,746,000	289,445,000	267,015,000	257,603,000	237,837,000	243,254,000	205,140,000	192,164,000	161,316,000	146,271,000	137,225,000	121,602,000	108,409,000	100,261,000	106,500,000	95,674,000	98,994,000	72,363,000	64,514,000
S&GA Expenses	17.5%	194,102,000	165,214,000	150,214,000	146,688,000	137,001,000	132,050,000	116,033,000	117,622,000	100,057,000	96,219,000	85,877,000	75,995,000	69,974,000	63,552,000	55,982,000	51,376,000	46,965,000	47,107,000	45,538,000	35,836,000	30,817,000
R&D Expenses	-9.0%	87,703,000	96,401,000	90,593,000	89,610,000	81,539,000	79,703,000	76,432,000	75,114,000	67,054,000	61,762,000	46,770,000	41,349,000	39,527,000	34,757,000	30,902,000	28,131,000	33,354,000	26,289,000	27,863,000	18,868,000	17,649,000
EBITDA Margin	9.2%	-0.03	-0.03	-0.05	-0.08	-0.06	-0.09	-0.10	-0.20	-0.19	-0.20	-0.20	-0.09	-0.09	-0.12	-0.15	-0.25	-0.27	-0.26	-0.25	-0.28	-0.31
Interest Expenses	2.9%	1,100,000	1,069,000	1,138,000	1,539,000	2,126,000	875,000	1,512,000	1,040,000	1,557,000	16,108,000	12,448,000	10,444,000	10,234,000	10,062,000	9,828,000	5,007,000	67,000	142,000	407,000	290,000	273,000
Income Taxes	12.9%	2,300,000	2,036,500	1,254,000	1,500,000	1,314,000	1,046,000	1,400,000	-170,000	374,000	20,568,500	-3,100,000	-4,300,000	-833,000	166,000	-3,500,000	-1,900,000	-338,000	624,000	-212,000	389,000	314,000
Earnings Before Taxes	-28.9%	-33,274,000	-25,811,000	-22,281,000	-93,002,000	-36,768,000	-44,845,000	-41,174,000	-63,707,000	-41,007,000	-56,930,000	-110,430,000	-39,820,000	-40,796,000	-33,844,000	-29,972,000	-28,073,000	-33,084,000	-27,531,000	-41,065,000	-19,317,000	-16,800,000
EBT Margin	8.2%	-0.13	-0.14	-0.16	-0.19	-0.18	-0.20	-0.23	-0.33	-0.34	-0.38	-0.38	-0.27	-0.28	-0.29	-0.30	-0.37	-0.38	-0.36	-0.33	-0.36	-0.40
Net Income	-27.6%	-35,543,000	-27,865,000	-23,535,000	-94,467,000	-38,082,000	-45,917,000	-42,546,000	-63,537,000	-41,381,000	-77,501,000	-107,335,000	-35,510,000	-39,963,000	-34,021,000	-26,468,000	-26,135,000	-32,746,000	-28,155,000	-40,853,000	-19,706,000	-17,114,000
Net Income Margin	7.7%	-0.13	-0.14	-0.17	-0.20	-0.18	-0.20	-0.25	-0.36	-0.36	-0.40	-0.37	-0.26	-0.26	-0.28	-0.29	-0.37	-0.38	-0.37	-0.33	-0.36	-0.40
Free Cashflow	-24.0%	41,523,000	54,625,000	40,809,000	25,703,000	18,873,000	37,978,000	792,000	1,167,000	-59,948,000	12,283,000	-35,730,000	-6,117,000	1,226,000	-19,226,000	-13,384,000	-15,213,000	-25,681,000	-20,882,000	-29,777,000	-12,821,000	-18,726,000

Balance Sheet

(In Millions)

(*) denotes actual numbers (not divided by Millions)
Balance Sheet																				(In Millions)
Description	(%) Q/Q	2024Q1	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2018Q4
Assets	1.5%	2,802	2,760	2,590	2,533	2,668	2,588	2,491	2,468	2,354	2,372	2,316	1,446	1,406	1,381	1,371	1,364	859	831	840	298
Current Assets	1.7%	2,016	1,983	1,858	1,818	1,954	1,888	1,816	1,814	1,895	1,956	1,931	1,146	1,140	1,130	1,127	1,132	648	690	696	197
Cash Equivalents	201.4%	262	87.00	94.00	159	256	204	149	154	160	321	625	257	197	118	121	323	118	146	508	31.00
Net PPE	2.0%	329	323	310	293	298	287	264	245	202	184	177	157	136	124	122	115	100	101	92.00	73.00
Goodwill	0%	148	148	148	148	148	148	149	149	120	5.00	6.00	17.00	17.00	17.00	17.00	17.00	16.00	4.00	4.00	4.00
Liabilities	0.4%	2,004	1,997	1,891	1,891	2,015	1,964	1,897	1,888	1,838	1,556	1,462	645	601	564	545	528	152	105	99.00	80.00
Current Liabilities	1.2%	574	567	478	473	445	398	339	333	277	289	227	200	168	141	131	121	108	84.00	77.00	61.00
Long Term Debt	0.1%	1,284	1,283	1,282	1,281	1,437	1,436	1,435	1,434	1,433	1,147	1,143	401	392	383	375	366	-	-	-	-
LT Debt, Current	-	-	-	-	35.00	-	-	-	-	-	12.00	-	-	-	-	-	-	-	-	0.00	0.00
LT Debt, Non Current	-100.0%	-	1,283	1,282	1,281	1,437	1,436	1,435	1,434	1,433	1,147	1,143	401	392	383	375	366	-	-	-	-
Shareholder's Equity	4.5%	797	763	699	642	653	624	594	580	515	811	853	801	804	817	826	836	706	726	740	-
Retained Earnings	-3.5%	-1,059	-1,023	-995	-972	-877	-839	-793	-751	-687	-680	-603	-495	-460	-420	-386	-360	-333	-301	-273	-195
Additional Paid-In Capital	4.1%	1,857	1,785	1,699	1,620	1,536	1,475	1,405	1,348	1,216	1,495	1,456	1,297	1,264	1,237	1,212	1,194	1,039	1,027	1,014	82.00
Shares Outstanding	1.5%	339	334	333	331	330	326	327	325	323	312	310	308	306	300	299	297	296	146	118	81.00
Float	-	-	-	-	9,021	-	-	-	7,588	-	-	-	14,847	-	-	-	4,336	-	-	1,905	-

Cashflow (Last 12 Months)

(In Thousands)

(*) denotes actual numbers (not divided by Thousands)
Cashflow (Quarterly)																					(In Thousands)
Description	(%) Q/Q	2024Q1	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2019Q2	2019Q1
Cashflow From Operations	-13.9%	73,579	85,441	68,100	64,451	36,414	78,123	42,688	38,251	-35,467	40,617	-6,918	7,455	23,494	-8,813	1,973	3,987	-14,276	-8,574	-17,786	-2,867	-9,690
Share Based Compensation	-6.3%	69,723	74,424	73,772	68,392	57,401	60,232	53,765	54,815	33,965	28,499	23,049	20,547	18,042	16,243	14,745	12,449	12,897	11,615	22,911	1,044	1,057
Cashflow From Investing	195.4%	96,950	-101,647	-100,229	108	15,567	-19,956	-48,887	-56,048	-110,805	-354,795	-444,773	42,470	47,776	-579	-205,153	-300,769	-8,772	-352,659	-92,829	12,638	15,209
Cashflow From Financing	-99.8%	21.00	9,790	-34,610	-168,612	1,247	8,019	1,439	11,143	-14,254	9,774	820,183	10,150	7,379	6,732	1,156	501,702	-4,678	-1,497	570,216	-199	2,248
Buy Backs	-	-	-	-	34.00	-	-	-	-	3.00	1.00	19.00	19.00	150	44.00	12.00	31.00	70.00	128	67.00	84.00	4.00

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NET Income Statement

2024-03-31

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 378,602	$ 290,175
Cost of revenue	85,038	70,432
Gross profit	293,564	219,743
Operating expenses:
Sales and marketing	194,102	137,001
Research and development	87,703	81,539
General and administrative	66,309	48,475
Total operating expenses	348,114	267,015
Loss from operations	(54,550)	(47,272)
Non-operating income (expense):
Interest income	21,252	13,487
Interest expense	(1,100)	(2,126)
Other income (expense), net	1,124	(857)
Total non-operating income, net	21,276	10,504
Loss before income taxes	(33,274)	(36,768)
Provision for income taxes	2,269	1,314
Net loss	$ (35,543)	$ (38,082)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.10)	$ (0.12)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.10)	$ (0.12)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	338,583	330,389
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	338,583	330,389

NET Balance Sheet

2024-03-31

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 254,401	$ 86,864
Available-for-sale securities	1,461,801	1,586,880
Accounts receivable, net	213,183	248,268
Contract assets	11,589	11,041
Restricted cash short-term	5,535	2,522
Prepaid expenses and other current assets	69,663	47,502
Total current assets	2,016,172	1,983,077
Property and equipment, net	329,422	322,813
Goodwill	148,047	148,047
Acquired intangible assets, net	14,298	19,564
Operating lease right-of-use assets	141,820	138,556
Deferred contract acquisition costs, noncurrent	137,527	133,236
Restricted cash	1,838	1,838
Other noncurrent assets	12,506	12,636
Total assets	2,801,630	2,759,767
Current liabilities:
Accounts payable	47,832	53,727
Accrued expenses and other current liabilities	68,412	63,597
Accrued compensation	62,299	63,801
Operating lease liabilities	39,273	38,351
Deferred revenue	356,243	347,608
Total current liabilities	574,059	567,084
Convertible senior notes, net	1,284,352	1,283,362
Operating lease liabilities, noncurrent	113,017	113,490
Deferred revenue, noncurrent	17,645	17,244
Other noncurrent liabilities	15,333	15,540
Total liabilities	2,004,406	1,996,720
Commitments and contingencies (Note 8)
Stockholders’ Equity
Additional paid-in capital	1,857,168	1,784,566
Accumulated deficit	(1,059,383)	(1,023,840)
Accumulated other comprehensive income (loss)	(900)	1,984
Total stockholders’ equity	797,224	763,047
Total liabilities and stockholders’ equity	2,801,630	2,759,767
Class A common stock
Stockholders’ Equity
Common stock, value, issued	300	297
Class B common stock
Stockholders’ Equity
Common stock, value, issued	$ 39	$ 40

About CloudFlare Inc

CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, secure origin connection, and rate limiting products. It also offers website and application performance solutions, including content delivery, load balancing, DNS, agro smart routing, video stream delivery, content optimization, virtual backbone, always online, and cloudflare waiting room and registrar; and network services, which deliver network connectivity, security, and performance to customers as a service, including WAN, WARP, magic transit, magic firewall, cloudflare network interconnect, and spectrum. In addition, the company provides zero trust services, such as cloudflare access, cloudflare gateway, remote browser isolation, cloud access security broker, cloudflare area 1 email security, and data loss prevention products that protect, inspect, and privilege data. Further, it provides developer-based solutions consisting of cloudflare workers, pages, stream, and images, as well as Cloudflare Data Localization suite, a tool that set rules and controls at the network edge; durable objects and R2 object storage products; Consumer DNS Resolver, a consumer app to browse the Internet; and consumer VPN for consumers to secure and accelerate traffic on mobile devices. The company serves customers in the technology, healthcare, financial services, consumer and retail, and non-profit industries, as well as government. CloudFlare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

CEO	Mr. Matthew Prince
WEBSITE	cloudflare.com
INDUSTRY	Software - Infra
EMPLOYEES	3389

CloudFlare Inc Frequently Asked Questions

What is the ticker symbol for CloudFlare Inc? What does NET stand for in stocks?

NET is the stock ticker symbol of CloudFlare Inc. Every public company that trades on a stock exchange gets a ticker symbol.

What is the market capital of CloudFlare Inc (NET)?

As of Tue May 07 2024, market cap of CloudFlare Inc is 25.09 Billion. The market capitalization is calculated by multiplying the stock price with the number of shares outstanding.

What is the fair value of NET stock?

You can check NET's fair value in chart for subscribers.

What is the fair value of NET stock?

You can check NET's fair value in chart for subscribers. The fair value of CloudFlare Inc is provided for various growth and macro-economic scenarios from very pessimiatic to very optimistic assumptions. These fair values are estimates from Grufity's Fair Value model based on company's past performance. However, past performance of CloudFlare Inc is no guarantee of future performance. These fairvalue estimates should only be used as one of the inputs in your stock analysis. We provide model's historical fair value estimates for NET so that you know how good or bad the model has been in the past so you can discard it if needed. There are others that provide fair values of stocks such as wallmine, finbox, gurufocus and finviz. Most provide point in time estimates. We provide a history of our models fair value estimates so that you can get a sense of it's usefulness. Otherwise this data point is of little use.

Is CloudFlare Inc a good stock to buy?

The fair value guage provides a quick view whether NET is over valued or under valued. Whether CloudFlare Inc is cheap or expensive depends on the assumptions which impact CloudFlare Inc's fair value. We provide several scenarios of inflation and growth to encompass these range of assumptions for NET.

What is CloudFlare Inc's Price to Earnings (PE) and Price to sales (PS) ratio?

As of Tue May 07 2024, NET's PE ratio (Price to Earnings) is -138.32 and Price to Sales (PS) ratio is 18.11. The price to earnings and price to sales ratio are two most important valuation metrics for any company. PE ratio tell us the number of years of earnings investors are ready to pay for owning the company. Historically, S&P500 price to earnings ratio has fallen below 12 during periods of gloom and gone past 30 during periods of euphoria. NET PE ratio will change depending on the future growth rate expectations of investors.