Why Cloudflare Sank 35% in May
Shares of Cloudflare (NYSE: NET) sank 35% in May, according to S&P Global Market Intelligence. The global cloud services provider posted its first-quarter earnings that were above analyst expectations; however, investors still decided to sell off the stock in the days and weeks following the report. We can also factor in the decline of the Nasdaq 100 and technology stocks, which continued last month.
On May 5, Cloudflare reported its earnings for the first three months of 2022. The company generated revenue of $212.5 million in the period, up 54% year over year, and adjusted earnings per share (EPS) of $0.01. Both numbers beat analyst expectations heading into the period, which typically means that the stock would be up in the weeks following the report. But that is not the case with Cloudflare, as we can see, with shares down over 30% in such a short time period.
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Source Fool.com
