Microsoft co-founder Bill Gates says artificial intelligence (AI) is the most revolutionary technology he has seen in decades. He formed that opinion after watching ChatGPT ace a college-level biology exam that included open-ended essay questions. Gates shared his thoughts in a recent blog post:
The development of AI is as fundamental as the creation of the microprocessor, the personal computer, the internet, and the mobile phone. It will change the way people work, learn, travel, get healthcare, and communicate with each other. Entire industries will reorient around it. Businesses will distinguish themselves by how well they use it.
Take a moment to consider how profoundly those technologies changed the world, as well as the wealth they created in the process. Such inflection points come along rarely, and many experts (including Gates) believe AI is the next one. The best way for investors to capitalize on that once-in-a-generation opportunity is to build a basket of AI stocks.
Here’s why Cloudflare(NET -0.62%) belongs in that basket.
Cloudflare is a leader in developer services
To understand why Cloudflare should benefit from the artificial intelligence (AI) boom, investors must first know what the company does and how it compares to peers. The short answer is that Cloudflare makes the internet faster and safer. The longer answer is that it provides a broad range of application, network, security, and developer services that accelerate and protect corporate software and infrastructure.
Cloudflare has differentiated itself through performance and scale. It operates the fastest cloud network and developer platform on the market, and it handles about 20% of internet traffic. Its platform is also cloud neutral, meaning it improves performance and security across public clouds and private data centers. That makes Cloudflare a useful partner even for businesses that rely on other cloud providers like Amazon Web Services and Microsoft Azure.
The upshot of its unmatched performance is that Cloudflare has established a strong presence in several cloud computing verticals, including developer services. Forrester Research recently recognized Cloudflare as the leader in edge development platforms, citing a superior product (i.e., Cloudflare Workers) and a stronger growth strategy compared to other vendors.
Management believes that its value proposition for developers — unmatched speed and cloud-neutral technology — will make Cloudflare a key part of the AI value chain. The company is leaning into that opportunity. It recently announced Workers AI, a service that allows businesses to build AI applications and run machine learning models on its network. Workers AI is accelerated by NvidiaGPUs and supported by other Cloudflare products like R2 (object storage) and Vectorize (vector database).
It may be a few years before those innovations become meaningful revenue streams, but the company is very optimistic. CEO Matthew Prince says that “Cloudflare is the most common cloud provider used by the leading AI companies.” He also believes Cloudflare is “uniquely positioned to become a leader in AI inferencing,” a market that represents the biggest opportunity in AI.
Cloudflare is a leader in zero trust network security
Beyond developer services, Cloudflare also has a strong presence in several cybersecurity markets. Forrester Research recently named the company a leader in email security, and the International Data Corp. recognized its leadership in zero trust network access.
One reason for that success is the data advantage created by its immense scale. As previously mentioned, about 20% of internet traffic flows across the Cloudflare network. That gives the company deep insight into performance issues and security threats across the web, and it uses that information to continuously route traffic more efficiently and counter threats more effectively.
Cloudflare brings together network and security services with Cloudflare One, a secure access service edge (SASE) platform that protects and connects users to private applications, public cloud services, and the open internet. Cloudflare One addresses the widespread push to modernize network security. Consultancy Gartner believes 80% of enterprises will adopt SASE architecture by 2025, up from 20% in 2021.
Cloudflare is chasing a $200 billion market opportunity
Cloudflare values its addressable market at $164 billion in 2024, but sees that figure surpassing $200 billion by 2026. Developer services and network security services account for most of that total. Cloudflare already has a strong presence in both markets, meaning the company is well positioned for future growth.
Indeed, Cloudflare ranked No. 6 on the Fortune Future 50 List for 2023, an annual assessment of the world’s largest companies based on long-term growth prospects. Making the list at all is an achievement, but taking sixth place is a testament to the company’s tremendous potential. The authors attributed Cloudflare’s high placement to opportunities in AI inferencing and cybersecurity.
With that in mind, analysts at Morningstar expect the company to grow revenue by 34% annually over the next five years, a reasonable estimate given that revenue increased by 46% annually during the past three years. In that context, the stock’s current valuation of 23.5 times sales looks reasonable, and it’s certainly a discount to the three-year average of 38.7 times sales.
That said, Cloudflare is not cheap and its share price will likely be volatile. But patient investors comfortable with price swings should feel confident in buying a small position in this growth stock today, especially as part of a broader basket of AI stocks.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Cloudflare, Microsoft, and Nvidia. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
