One cybersecurity name is repositioning itself as an AI play. How to trade a potential move higher
Tony Zhang breaks down this bullish options trade.
AI Summary
Cloudflare is breaking out above $250 resistance as investors begin treating it as an AI infrastructure play rather than just a cybersecurity company, with strong revenue growth and a repositioning toward an "agentic operating model" that includes a workforce reduction. The trade targets a move higher toward prior highs near $277, supported by renewed institutional demand and a premium valuation justified by faster-than-peer growth.