Why Cloudflare Stock Plummeted This Week
Cloudflare (NYSE: NET) stock's terrible year got even worse this week. Shares of the cloud-services business fell a total of 16.1% this week, according to data provided by S&P Global Market Intelligence.
The stock's decline comes as the market is rerating growth stocks like Cloudflare lower. As the Federal Reserve tightens liquidity, stocks priced largely on expected higher cash flows far into the future are falling out of favor, compressing their valuation multiples. While this has been a trend for much of the year, it continued to be a driving force behind the market this week.
Capturing a tough week in the overall market, the S&P 500 fell 3% this week, and the tech-heavy Nasdaq Composite declined 3.8%.
Source Fool.com
