What happened

Shares of edge network software specialist Cloudflare (NET -2.56%) are surging this week. At its highest point during the week, the growth stock was up 19.2%. As of the market close on Thursday, the stock's total gain so far this week was 18.9%.

The rise is likely due to a few bullish days in the overall market this week. Many growth stocks like Cloudflare performed especially well.

Arrows pointing up

Image source: Getty Images.

So what

After the tech-heavy Nasdaq Composite was pummeled on Monday, falling more than 2%, the index has been rising nicely. It rose 1.3% on Tuesday, 0.5% on Wednesday, and 1.1% on Thursday. Many growth tech stocks like Cloudflare, however, rose even more on these trading days.

The stock's gain on Thursday likely also reflects a rebound in the price following some brutal trading days last week that left shares down 15%.

Now what

Zooming out from these volatile few weeks, shares of Cloudflare have performed very well this year. The stock is up 80% year to date, crushing the Nasdaq Composite's 14% gain over this same period.

The company's accelerating revenue growth and its high dollar-based net retention rate have been winning over investors.

Capturing the company's momentum, management recently guided for total fiscal 2021 revenue to be between $629 million and $633 million, up from just $431 million in fiscal 2020.