Cloudflare's strong revenue growth (45% YoY) and expanding gross margins (78%) justify its premium valuation, though recent insider selling warrants monitoring. Technicals show support at $75, but RSI nears overbought territory, suggesting short-term consolidation.

Market sentiment is mixed, with AI-driven optimism counterbalanced by insider selling concerns and sector rotation away from high-growth tech. Short-term volatility is likely, but long-term bullish trends in cybersecurity and edge computing remain intact.

Insider selling and AI valuation jitters introduce near-term downside risk, but Cloudflare's moat in CDN/security and recurring revenue model support long-term resilience. Monitor macroeconomic shifts and customer churn rates as key risk indicators.

MACD shows weakening momentum, and volume spikes on down days suggest bearish pressure, but the 50-day MA ($78) remains intact. Watch for a break below $75 to confirm a short-term bearish reversal.