This was my week to choose a stock for the portfolio @brianferoldi and I run.

We chose Cloudflare $NET -- a stock that is admittedly richly valued, but we (or at least "I") think its deserved.

Here's what you need to know

The core business is helping a company's digital properties run smoothly

While it's expensive to get customers, that's because the business has high switching costs. Once they're in, we believe it's for the long haul

We're big fans of Matthew Prince, founder and CEO who has lots of skin in the game and has built a great culture

There's still tons of operating leverage ahead and market to grab, with demonstrated optionality

Competition is no doubt tough, but we think $NET offers more than anyone else under one umbrella via the cloud

Here's what we'll watch moving forward

And here's how the company scored on our framework

We know the valuation is steep, so we'd love to hear detailed arguments for and against buying at these prices!