Mirae Asset Global Investments Co. Ltd. Sells 33,394 Shares of Cloudflare, Inc. $NET

Key Points

• Mirae Asset Global Investments cut its Cloudflare stake by 68.4%. The fund sold 33,394 shares in the second quarter and retained 15,404 shares valued at approximately $3.78 million.
• Cloudflare reported strong quarterly results and raised expectations. Revenue rose 35.9% year over year to $696.1 million, while EPS of $0.29 exceeded estimates; analysts maintain a consensus “Moderate Buy” rating with an average target of $320.19.
• The stock’s strong momentum is balanced by significant risks. Shares opened at $331.45, near their 52-week high, despite a highly elevated valuation, ongoing GAAP losses, convertible-note dilution potential and substantial insider selling.

Mirae Asset Global Investments Co. Ltd. reduced its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 68.4% in the 2nd quarter, according to its most recent filing with the SEC. The fund owned 15,404 shares of the company's stock after selling 33,394 shares during the period. Mirae Asset Global Investments Co. Ltd.'s holdings in Cloudflare were worth $3,778,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. HM Payson & Co. bought a new stake in Cloudflare in the fourth quarter valued at approximately $25,000. Wiser Advisor Group LLC acquired a new stake in shares of Cloudflare in the third quarter valued at approximately $26,000. Wexford Capital LP bought a new position in shares of Cloudflare during the 3rd quarter worth approximately $30,000. CX Institutional boosted its stake in shares of Cloudflare by 49.4% during the 2nd quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after acquiring an additional 44 shares during the period. Finally, Brown Brothers Harriman & Co. increased its holdings in shares of Cloudflare by 55.4% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock worth $34,000 after acquiring an additional 56 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Cloudflare Stock Performance

NYSE:NET opened at $331.45 on Friday. The stock has a 50 day simple moving average of $260.67 and a 200 day simple moving average of $223.07. The stock has a market cap of $117.16 billion, a P/E ratio of -571.47, a PEG ratio of 192.59 and a beta of 1.65. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $332.22. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.02. The firm had revenue of $696.06 million for the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The company's revenue for the quarter was up 35.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.21 EPS. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Research analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. The Goldman Sachs Group restated a "buy" rating and issued a $389.00 price target on shares of Cloudflare in a research note on Friday, August 7th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $136.00 price objective on shares of Cloudflare in a report on Wednesday, June 10th. UBS Group increased their price objective on shares of Cloudflare from $250.00 to $350.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. Susquehanna raised their target price on shares of Cloudflare from $200.00 to $300.00 and gave the stock a "neutral" rating in a research note on Monday. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $250.00 target price on shares of Cloudflare in a research note on Monday, August 3rd. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $320.19.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Strong Q2 results and upbeat guidance support the rally. Cloudflare reported revenue of $696.1 million, up 35.9% year over year and above expectations, while non-GAAP EPS of $0.29 exceeded the $0.27 consensus. Next-quarter revenue guidance of approximately $736.5 million was also ahead of analyst estimates. NET Q2 Deep Dive
• Positive Sentiment: AI security and developer-platform demand are strengthening Cloudflare’s growth story. Coverage points to increasing demand for SASE, Zero Trust, agentic AI and developer tools, potentially helping Cloudflare win larger enterprise contracts and compete more directly with Palo Alto Networks and Zscaler. Cloudflare AI security strategy
• Positive Sentiment: Signal selected Cloudflare as an independent Key Transparency auditor. The partnership gives hundreds of millions of Signal users additional confidence in message privacy and showcases Cloudflare’s security and trust infrastructure. Signal partnership announcement
• Positive Sentiment: Analyst sentiment remains broadly favorable. Several firms raised price targets, and brokerages maintain a consensus “Moderate Buy” view. Technical coverage also describes strong momentum after the earnings beat. Cloudflare momentum setup
• Neutral Sentiment: Cloudflare raised $2.175 billion through zero-coupon convertible notes due in 2031. The deal adds financial flexibility without cash interest expense, but potential future share conversion could dilute existing shareholders. Cloudflare convertible note offering
• Negative Sentiment: x402 settlement volume has plunged 93% year to date. The decline suggests the late-2025 surge in AI-agent payments may have been driven primarily by testing rather than sustained demand, challenging near-term monetization expectations. x402 settlement volume report
• Negative Sentiment: Valuation and insider selling create downside risks. Cloudflare trades at a demanding valuation while remaining GAAP-unprofitable. Director John Graham-Cumming sold 2,520 shares under a pre-arranged Rule 10b5-1 plan, although he retained nearly 495,000 shares. Cloudflare director stock sale

Insider Activity at Cloudflare

In other Cloudflare news, insider Michelle Zatlyn sold 35,080 shares of Cloudflare stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $213.98, for a total value of $7,506,418.40. Following the completion of the sale, the insider owned 47,425 shares in the company, valued at $10,148,001.50. The trade was a 42.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the business's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total transaction of $13,057,795.98. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 748,719 shares of company stock worth $183,992,198. Corporate insiders own 10.66% of the company's stock.

Cloudflare Company Profile

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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