Cloudflare Stock Slides On Anthropic Leak, AI Competition Concerns - Cloudflare (NYSE:NET)

Cloudflare stock is showing notable weakness. Why is NET stock dropping? Anthropic Leak Sparks Fresh AI Disruption Fears In Cybersecurity

Anthropic said the exposure resulted from human error in its CMS configuration and said the issue was unrelated to its existing AI tools, but the leak still rattled investors across cybersecurity names.

Cloudflare And Security Stocks Face Pressure On Competitive, Margin Concerns

The sell-off also reflects a growing market fear that powerful AI systems from companies like Anthropic and OpenAI could force cybersecurity vendors to spend more aggressively on product development just to keep pace.

That broader read-through hit several security names Friday, with investors reassessing both competitive risk and future margin pressure across the sector.

Cloudflare Earnings Due May 7 As Revenue Growth Stays In Focus

Looking further out, the next major catalyst for the stock arrives with the May 7 earnings report.

EPS Estimate: 12 cents (Down from 16 cents YoY) Revenue Estimate: $622.45 million (Up from $479.09 million YoY) Wall Street Maintains Buy Consensus On Cloudflare Stock

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $240.72. Recent analyst moves include:

Citigroup: Buy (Raises Target to $265.00) (Feb. 12) Jefferies: Hold (Raises Target to $225.00) (Feb. 11) Piper Sandler: Neutral (Raises Target to $222.00) (Feb. 11) NET Shares Slide Friday Afternoon

NET Price Action: Cloudflare shares were down 3.54% at $202.69 at the time of publication on Friday, according to Benzinga Pro data.

Image: Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.