Cloudflare (NYSE:NET) Share Price Breaks Below 200-Day Moving Average – Here’s Why

Cloudflare, Inc. (NYSE:NET)’s stock price crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $249.31 and traded as low as $233.62. Cloudflare shares last traded at $243.7880, with a volume of 8,454,470 shares.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Third-quarter revenue rose 39.2% year over year to $782.5 million, beating estimates, while adjusted EPS of $0.38 also topped forecasts. The company cited strong enterprise demand and growing adoption of its developer platform. Cloudflare Q3 Earnings Beat Estimates on Robust Enterprise Demand
• Positive Sentiment: Cloudflare raised its 2026 outlook: full-year revenue guidance is about $3.0 billion and EPS guidance is $1.35, above consensus estimates. Fourth-quarter revenue guidance of $845 million–$846 million and EPS guidance of $0.43 also exceeded expectations. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Further signs of AI-related momentum include Cloudflare’s first revenue from AI bot traffic and a developer base that doubled to 10 million. Analysts at Wolfe Research upgraded the shares to Outperform. Why Cloudflare Stock Opened Higher Today
• Neutral Sentiment: Analyst actions were mixed: Piper Sandler reaffirmed Overweight and raised its target, while Scotiabank, Needham and Cantor Fitzgerald lowered targets; the latter firms retained positive or neutral ratings. Scotiabank rating update
• Negative Sentiment: Some profitability measures lagged growth: gross margin faced pressure, free cash flow grew more slowly than revenue, and the GAAP operating loss widened. Cloudflare’s high valuation may make the stock sensitive to any slowdown or disappointment. Cloudflare Sales Up 39%, Gross Margin Falls

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Morgan Stanley assumed coverage on shares of Cloudflare in a research report on Tuesday. They issued an “overweight” rating on the stock. Craig Hallum upgraded shares of Cloudflare to a “buy” rating in a research note on Tuesday. Zacks Research raised shares of Cloudflare from a “strong sell” rating to a “hold” rating in a research report on Tuesday. Wolfe Research upgraded shares of Cloudflare from a “hold” rating to an “outperform” rating in a research note on Friday. Finally, KeyCorp upped their price objective on shares of Cloudflare from $300.00 to $375.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. Twenty-six analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, Cloudflare has an average rating of “Moderate Buy” and a consensus target price of $332.82.

Cloudflare Price Performance

The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. The firm has a market capitalization of $95.15 billion, a price-to-earnings ratio of -395.88, a P/E/G ratio of 210.90 and a beta of 1.37. The company has a fifty day moving average price of $318.23 and a two-hundred day moving average price of $249.77.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, November 5th. The company reported $0.38 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.04. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The business had revenue of $782.51 million for the quarter, compared to analysts’ expectations of $737.16 million. During the same period in the previous year, the company posted $0.27 EPS. The company’s quarterly revenue was up 39.2% on a year-over-year basis. On average, equities research analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Insider Transactions at Cloudflare

In related news, Director Carl Ledbetter sold 5,000 shares of Cloudflare stock in a transaction on Monday, October 19th. The shares were sold at an average price of $304.40, for a total value of $1,522,000.00. Following the transaction, the director directly owned 868,073 shares in the company, valued at $264,241,421.20. This trade represents a 0.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas Seifert sold 12,500 shares of the business’s stock in a transaction on Monday, October 19th. The shares were sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the completion of the transaction, the chief financial officer directly owned 104,958 shares in the company, valued at $31,444,367.22. This represents a 10.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 259,057 shares of company stock worth $79,516,905 over the last 90 days. 10.66% of the stock is currently owned by insiders.

Institutional Trading of Cloudflare

Several hedge funds and other institutional investors have recently made changes to their positions in NET. GK Wealth Management LLC purchased a new position in Cloudflare during the third quarter worth about $25,000. Toth Financial Advisory Corp purchased a new stake in Cloudflare in the 3rd quarter valued at approximately $36,000. Cornerstone Financial Management LLC boosted its holdings in Cloudflare by 65.3% in the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after purchasing an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. purchased a new stake in Cloudflare in the 2nd quarter valued at approximately $30,000. Finally, CX Institutional increased its position in Cloudflare by 49.4% during the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after purchasing an additional 44 shares during the period. Hedge funds and other institutional investors own 82.68% of the company’s stock.

About Cloudflare

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.