On May 27, Cloudflare declined 4.2% in regular trading, trading at approximately $210.97 per share, with trading volume of $103 million.

The decline reflects dual headwinds from an ongoing layoff controversy and softer-than-expected second-quarter guidance. The company announced a global workforce reduction of approximately 20% as it shifts to an AI-first operational model, sparking widespread market debate. While its first-quarter results exceeded expectations — revenue grew 34% year-over-year to $639.8 million and Non-GAAP EPS of $0.25 beat consensus — the second-quarter revenue guidance came in slightly below analyst expectations, pressuring the stock in the near term.

RBC Capital Markets maintained its Outperform rating and $240 target price, citing Cloudflare's favorable positioning in the AI agent space and potential to achieve its 2028 revenue target of $5 billion ahead of schedule. However, the combination of guidance weakness and layoff-related controversy continues to dominate price action. Within the Internet Services & Infrastructure sector, CoreWeave fell 3.96%, DigitalOcean dropped 4.84%, and Snowflake declined 1.19%, reflecting broad sector pressure.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)