Cloudflare Inc. (NYSE:NET) stock is trading lower by about 2% on Tuesday as risk appetite weakens across equities. Investors are pulling back from higher-multiple growth stocks. The Nasdaq is down 0.15%, while the S&P 500 has lost 0.32%.
Cloudflare’s decline appears tied largely to broader market weakness rather than a company-specific headline. With stocks under pressure, traders are watching whether Cloudflare can hold key technical levels after a strong multi-month run.
Cloudflare Teams With OpenAI To Fight Cyber Threats With AI
Separately, Cloudflare said Thursday it is working with OpenAI to launch an AI-powered service that can find, block and help fix software vulnerabilities.
The Vulnerability Discovery and Remediation service uses OpenAI Daybreak models, including GPT-5.6 Cyber. It combines AI code analysis with real-time data from Cloudflare’s global network.
The system can identify high-risk flaws and create custom firewall rules to block attacks. It can also generate code patches for developers. However, Cloudflare said no fix or security rule goes live without human approval.
The launch comes as software vulnerabilities climb. The National Vulnerability Database had logged 60,475 vulnerabilities by September, topping the 48,185 recorded in all of 2025.
The service is available by invitation to select Cloudflare Enterprise customers through Cloudflare Managed Defense.
See More: Top Value Stocks
Technical Analysis
Cloudflare remains in a longer-term uptrend despite the latest pullback. The stock is 10.9% above its 100-day simple moving average and 25.2% above its 200-day SMA.
The bullish structure also remains intact after a golden cross formed in May. However, near-term momentum has weakened. NET is now 5.3% below its 20-day SMA after retreating from its August swing high.
The relative strength index stands at 47, putting the stock in neutral territory. That suggests neither buyers nor sellers have firm control.
Traders are watching $291 as key resistance. A move above that level could help stabilize the short-term trend. Meanwhile, $250.50 remains a key support level. That area is close to the 100-day SMA of $251.59.
Analyst Outlook
Cloudflare carries a Buy consensus rating with an average price forecast of $341.68.
Citizens maintained a Market Outperform rating and a $394 price forecast on Aug. 31. Citigroup maintained a Buy rating and raised its forecast to $400 on Aug. 10. Susquehanna maintained a Neutral rating and lifted its forecast to $300 on Aug. 10.
Benzinga Edge Rankings
The Benzinga Edge scorecard gives Cloudflare a Momentum score of 85.61. The reading signals strong longer-term price performance despite the recent pullback.
The Verdict: Cloudflare’s longer-term momentum remains bullish, but its short-term trend has weakened. A move above $291 could strengthen the setup. However, continued selling could put the $250.50 support area in focus.
Top ETF Exposure
Cloudflare has a 5.39% weighting in the Amplify Cybersecurity ETF (NYSE:HACK), a 4.55% weighting in the Global X Cloud Computing ETF (NASDAQ:CLOU) and a 5.68% weighting in the Baillie Gifford Long Term Global Growth ETF (NASDAQ:BGGG).
These weightings mean ETF inflows and outflows can contribute to buying or selling pressure in Cloudflare shares.
Price Action
NET Stock Price Activity: Cloudflare shares were down 1.69% at $278.75 at the time of publication Tuesday, according to Benzinga Pro data.
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