Why Cloudflare Stock Fell Today?

Cloudflare, Inc. NET shares traded lower on Thursday as the stock pulled back following Wednesday's strength.

What To Know: Cloudflare shares have been rising since the company reported better-than-expected third-quarter financial results last Thursday.

The company reported adjusted earnings of 16 cents per share, exceeding the analyst consensus estimate of 10 cents. The figure marked an increase from 6 cents from the same period last year.

Revenue of $335.6 million beat the analyst consensus estimate of $330.53 million, a rise of 32% year-over-year.

Cloudflare issued fourth-quarter revenue guidance between $352 million and $353 million. Fourth-quarter adjusted earnings are estimated to be 12 cents per share. 

Full-year 2023 revenue is expected to be between $1.286 billion and $1.287 billion, versus the consensus of $1.28 billion. Full-year adjusted earnings are expected to be between 45 cents and 46 cents per share versus a consensus of 37 cents. 

Cloudflare shares took a breather from the recent rally on Thursday, pulling back by almost 4%. The stock also had its price target changed by three analysts since the earnings report. 

On Nov. 3,  RBC Capital analyst Matthew Hedberg maintained Cloudflare with an Outperform and lowered the price target from $70 to $65. Piper Sandler analyst James Fish maintained the stock with a Neutral and lowered the price target from $64 to $60. 

On Nov. 7, Morgan Stanley analyst Keith Weiss maintained Cloudflare with an Equal-Weight and raised the price target from $55 to $60.

Related Link: Why Bill Holdings Stock Is Trading Down Today

NET Price Action: Shares of NET closed lower by 3.72% at $62.18 at the time of publication Thursday, according to Benzinga Pro. 

Image by James Osborne from Pixabay