Why Cloudflare Stock Was Soaring This Week
Shares of Cloudflare (NYSE: NET) ripped close to 18% higher this week, according to data from S&P Global Market Intelligence. Even with no news, Cloudflare stock seems to be making new highs every week, with the stock up 70% alone in the last month. So why are investors all over this stock right now? Two words: artificial intelligence (AI).
After reporting slowing revenue growth and poor guidance in its first-quarter earnings report, Cloudflare's stock tanked around 30%-40%. But in recent weeks, it has announced new products centered around the recent boom in AI products and how its cloud network and other software/infrastructure tools have been utilized by AI start-ups.
For example, the company's R2 Storage product (yes, that is an explicit Star Wars reference) is reportedly being used as essential infrastructure for generative AI companies, according to a Cloudflare press release. Generative AI requires immense amounts of computing power, which R2 helps companies manage as efficiently as possible. CEO Matt Prince called Cloudflare "the first developer platform built for the age of AI" in the R2 press release.
Source Fool.com
