$NET

Cloudflare (NET) stock rose 35% in 2026 through November 2, but fell 28% from its October high. Q2 revenue grew 36% to $696M, with full-year guidance raised to $2.864B-$2.870B. CEO highlights AI opportunities, but margins declined. Datadog (DDOG) also faced selling pressure ahead of earnings.

Analysts made several calls on Tuesday: Bank of America reiterated Apple as a buy, Deutsche Bank maintained Palantir as a buy, Morgan Stanley initiated Pony AI at overweight, and Wedbush started Nano Nuclear Energy at outperform. KeyBanc upgraded Howmet Aerospace, while Bank of America downgraded Marvell. Goldman Sachs upgraded SiriusXM, Bernstein reiterated Nvidia as outperform, and BMO upgraded Marsh & McLennan and AON.

Apple (AAPL) fell in after-hours trading despite beating estimates, citing China revenue misses and rising costs. Analysts upgraded AON, Bloom Energy, Cloudflare, and SiriusXM, while downgrading Chevron, Marvell, Lumentum, Merck, and Roku. Markets remain volatile ahead of key economic data.

JP Morgan upgraded Cloudflare to Overweight from Neutral, maintaining a $350 price target, suggesting a 32% upside from the Nov 2 close. Recent analyst price targets for Cloudflare range from $245 to $400.

The Delaware Court of Chancery ruled in In re Cloudflare, Inc. Stockholder Litigation that a recapitalization plan by Cloudflare's founders to preserve control may not have been conducted in good faith, despite the defendants winning on other arguments. The court found that the special committee's independence and process were questionable, with evidence of ephemeral messaging, biased expert selection, and founder pressure.

Cloudflare (NET) shares fell 6% Monday after Jefferies analyst Joe Gallo lowered his price target to $320, citing high expectations. The company is set to report earnings Thursday, with analysts expecting $739M revenue and $0.34 EPS, slightly above Cloudflare's guidance. Cloudflare recently addressed a major PHP vulnerability, highlighting its cybersecurity role.

A recent Delaware court decision involving Cloudflare has raised concerns about corporate exits from the state. The ruling, applying new law SB 21, blocked a transaction despite meeting legislative requirements, redefining 'good faith' and potentially impacting corporate governance standards. Cloudflare's stock has risen ~1800% since its 2019 IPO.

Cloudflare (NET) and Datadog (DDOG) stocks fell 14% and 13% respectively in the week ending Oct. 30, despite no weak results. The decline was part of a broader software selloff, triggered by AI disruption fears and weak tech results. Cloudflare's Nov. 5 report is expected to show 31% revenue growth and gross margin near 73%. Datadog reports on Nov. 4, with Q2 revenue growth of 36%.

Cloudflare CEO Matthew Prince predicts agent traffic could surpass human traffic 1,000 times in five years, necessitating a shift in internet pricing models. The company is developing a gateway for agent micropayments. Cloudflare's Q2 2026 revenue grew 36%, but gross margin fell from 77.3% to 74.5% due to increased traffic costs. The company aims to generate revenue from agent payments in 2026.

CoreWeave (CRWV) fell 11% to $54.34, and Nebius (NBIS) dropped 9% to $156.73, as investors worry about hyperscaler spending. Cloudflare (NET) and Snowflake (SNOW) also declined. CoreWeave's debt and reliance on a few large customers are concerns, while Cloudflare and Snowflake have less exposure to AI capital spending.