NET is trading at $213.93, down 16.7% as a 20% workforce reduction and strategic pivot to an agentic AI-first model spark concerns over execution risks despite a strong Q1 performance.
- Cloudflare reported 34% year-over-year revenue growth to $639.8 million, exceeding analyst expectations for the first quarter.
- The sharp decline reflects market uncertainty regarding the impact of the massive restructuring on near-term profitability and the company's aggressive shift in business strategy.
- The stock is currently trading significantly lower than its May 7 closing price of $256.79.