Confluent shares plummet 31.2% to $18.17

Confluent (CFLT) stock has fallen by 31.2% or $8.23 to $18.17. No specific reason is given for the decline.

Confluent Inc. (CFLT) stock has experienced a significant decline, dropping by 31.2% or $8.23 to $18.17 on July 2, 2025. The stock's performance has been particularly notable on a day when broader AI stocks saw gains, with Microsoft (MSFT) and Meta Platforms (META) reporting strong earnings. Despite meeting or exceeding expectations, Confluent's outlook appears to have disappointed investors [1].

The company's second-quarter earnings report showed that it met or exceeded analyst expectations, with an adjusted earnings per share (EPS) of 9 cents, compared to the expected 8 cents per share. Revenue increased by 20% year-over-year to $282.3 million, surpassing estimates of $278.4 million. However, the outlook for the cloud business and new customer additions was cited as a concern by several analysts [1].

Stifel analyst Brad Reback downgraded Confluent to a hold rating, noting that "continued cloud usage optimization, slower net new workload activity, lackluster new customer adds and an AI customer that is moving from cloud to self-managed platform creates meaningful cloud growth headwinds in coming quarters." Similarly, Guggenheim lowered its price target to $29.00 from $31.00, citing concerns about cloud growth and customer optimizations [3].

Confluent's stock has been volatile, touching a 52-week low of $17.79 earlier in the year and experiencing a notable 1-year change of 27.97% increase. Despite the recent dip, the company maintains a strong financial position with a current ratio of 4.42, indicating robust liquidity [2].

The mixed outlook surrounding Confluent's performance has led to a decline in its stock price, pushing it below its 200-day, 50-day, and 21-day moving averages. Some analysts remain bullish on the stock, citing long-term growth drivers such as increasing demand for real-time data streaming and generative AI tailwinds [1]. However, the overall sentiment is cautious, with analysts expecting further volatility and a potential return to the low end of the trading range [1].

References
[1] https://www.investors.com/news/technology/confluent-stock-q2-2025-earnings-results-ai-cflt-news/
[2] https://www.investing.com/news/company-news/confluent-stock-hits-52week-low-at-1779-usd-93CH-4163464
[3] https://za.investing.com/news/analyst-ratings/guggenheim-lowers-confluent-stock-price-target-to-29-on-cloud-growth-concerns-93CH-3813779