Cloudflare Stock Edges Lower As Piper Sandler Says Analyst Day Won't Be 'Thesis-Changing:' Retail's Bearish

Shares of Cloudflare Inc. (NET) fell nearly 1% in after-market trade on Monday, extending the losses of 1.6% during the day’s regular trade as analysts at Piper Sandler toned down their expectations from the company’s upcoming analyst day event.

Cloudflare is scheduled to host an analyst day event on March 12. Analysts expect it to update investors on how their go-to-market strategy is shaping up after changes made under the company’s new president, CJ Desai, in October.

The content delivery service provider is also expected to clarify its approach with respect to artificial intelligence (AI) and reiterate its long-term operating framework. 

Analysts also expect Cloudflare to make a new product announcement.

That said, according to The Fly, analysts at Piper Sandler think that the analyst day event won’t be “thesis-changing” for Cloudflare’s investors.

The brokerage maintained its ‘Neutral’ rating on the stock.

In February, Cloudflare stock climbed to over three-year highs on the back of a strong fourth-quarter performance that beat Wall Street estimates on both earnings and revenue.

According to data from FinChat, the average price target for Cloudflare was $144.02 at the time of writing, marginally higher than the stock’s closing price on Monday.

Of the 35 brokerage recommendations, data shows eight ‘Buy’ and six ‘Outperform’ ratings, while 17 brokerages recommend ‘Hold.’ There are three ‘Underperform’ ratings and one ‘Sell’ recommendation.

On Stocktwits, retail sentiment around the Cloudflare stock remained ‘bearish’ (40/100), indicating pessimism among investors.

However, one user pointed out that Cloudflare's stock is notably down from its post-earnings high of $176.50, saying it is an “easy buy.”

Despite falling 17% since Q4 earnings, Cloudflare’s stock has gained over 83% in the past six months.

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