Cloudflare, Inc. (NET) shares plunged 5.65% in pre-market trading on Thursday, as investors continued to lock in profits ahead of the company's highly anticipated second-quarter earnings report.

The decline follows a 3.33% drop in the prior session, with the stock retreating from the 300-310 USD target price range set by investment banks including Mizuho and Scotiabank. Market consensus expects an EPS of -0.03 USD, and the uncertainty surrounding the earnings release is weighing on the stock. Recent product launches — such as Cloudflare Wallets and the @cloudflare/computer open-source library — had driven a 3.51% rally earlier in the week, but these short-term catalysts appear to have been fully priced in, shifting focus to whether the earnings can validate AI-driven revenue growth expectations.

The pre-market sell-off highlights the heightened caution among traders as they await the company's financial results after the market close.