Why Cloudflare (NET) Stock Is Up Today

What Happened?

Shares of cloud security and performance company Cloudflare (NYSE:NET) jumped 3.6% in the afternoon session after the company's CFO, Thomas Seifert, highlighted strong growth and a focus on AI during the Morgan Stanley Technology, Media & Telecom Conference. 

Seifert discussed the company’s solid performance in 2025, which included a 30% rise in revenue and the signing of its largest-ever contract, valued at $130 million. He also noted that traffic from AI agents doubled in January 2026, pointing to growing demand and a significant path for future growth. The company also published its 2026 Threat Report, which detailed the 230 billion threats it blocked on average each day, showcasing its key role in cybersecurity.

After the initial pop the shares cooled down to $185.33, up 3.5% from previous close.

Is now the time to buy Cloudflare?

What Is The Market Telling Us

Cloudflare’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 4.5% on the news that software stocks rebounded as the market shook off growing uncertainty amid escalating tension in the Middle East. This previous sell-off, nicknamed the "SaaSpocalypse," was driven by investor fears that new artificial intelligence agents could disrupt and threaten the business models of enterprise software companies. The rally suggests investors are shifting from blind fear to a more nuanced view as they monitor the market for "AI Winners.".

Cloudflare is down 5.5% since the beginning of the year, and at $185.33 per share, it is trading 26.8% below its 52-week high of $253.30 from October 2025. Investors who bought $1,000 worth of Cloudflare’s shares 5 years ago would now be looking at an investment worth $2,754.

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This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this.