Cloudflare Inc. shares (
NET
) fell by 18.35% after the company's second-quarter revenue projections fell short of analysts' expectations. The company estimated revenue to be between $393.5 million and $394.5 million in the second quarter, with the midpoint missing analysts' estimates of $394.5 million. This has raised concerns about the company's ability to maintain its current growth rate. Cloudflare (
NET
) and its peers have faced headwinds in recent months as businesses scaled back IT spending.
Despite this, the company posted adjusted earnings of 16 cents per share, up from a year earlier and beating analysts' estimates of 13 cents. Its first-quarter sales of $378.6 million beat analysts' estimates of $373.7 million.
Analysts believe that Cloudflare ( NET ) is taking share from rivals with cloud-based offerings on its content-delivery network, and a sales-force restructuring has gained traction. New product launches and larger enterprise accounts may help the company maintain steady revenue growth.
Technically, Cloudflare ( NET ) stock is trading below the 200-day Moving Average (MA) forming a downward gap that occurred as a result of the disappointing revenue outlook. the stock is trading with a Relative Strength Index (RSI) of 25.74 which is arguably oversold.
Despite this, the company posted adjusted earnings of 16 cents per share, up from a year earlier and beating analysts' estimates of 13 cents. Its first-quarter sales of $378.6 million beat analysts' estimates of $373.7 million.
Analysts believe that Cloudflare ( NET ) is taking share from rivals with cloud-based offerings on its content-delivery network, and a sales-force restructuring has gained traction. New product launches and larger enterprise accounts may help the company maintain steady revenue growth.
Technically, Cloudflare ( NET ) stock is trading below the 200-day Moving Average (MA) forming a downward gap that occurred as a result of the disappointing revenue outlook. the stock is trading with a Relative Strength Index (RSI) of 25.74 which is arguably oversold.
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