On May 28, Cloudflare rose 3.24% in pre-market trading, trading at approximately $215.10 per share, with trading volume of $1.0468 million. The rebound follows a 4.2% decline in the prior session and is primarily driven by RBC Capital Markets reaffirming its bullish stance on the company.

RBC Capital Markets reiterated its outperform rating and $240 price target, highlighting that Cloudflare is well-positioned in the AI agent space. The brokerage noted that many top frontier models leverage Cloudflare's services, and the company is likely ahead of schedule on its $5 billion revenue target by 2028. RBC also pointed to the upcoming June 9 analyst day as a potential catalyst, where management is expected to offer insights into how agent-driven productivity decouples traditional inputs from output, supporting durable growth and margin expansion toward the Rule of 50.

The prior session's decline was triggered by the company's announcement of approximately 20% global workforce reductions as part of an AI-first operational pivot, compounded by Q2 revenue guidance that came in slightly below consensus expectations — despite Q1 results showing 34% year-over-year revenue growth to $639.8 million and Non-GAAP EPS of $0.25, both exceeding estimates.

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