Why Cloudflare Stock Stumbled Today
Although investors should never make their stock buy or sell decisions purely on the move of an analyst, a change in pundit outlook can often impact a company. So it was on Monday, with content delivery network (CDN) services provider Cloudflare (NYSE: NET); on a prognosticator's recommendation downgrade, investors traded out of the shares. They closed down by almost 2.5% on the day.
The analyst, who is now officially more bearish on Cloudflare's future, is Guggenheim's John DiFucci. Well before market open, he changed his recommendation on the specialty tech stock to sell from the previous neutral. He also set a new price target of $50 per share.
In a new research note, DiFucci expressed concern with the company's inflated share price, and with what he believes is overly rosy guidance.
Source Fool.com
