Cloudflare's Turnover Dips 54% but Maintains 100th Rank Amid Earnings Surge and Citigroup Upgrade

Market Snapshot

Cloudflare, Inc. (NET) experienced a decline in trading volume on November 3, 2025, with a turnover of $1.08 billion, representing a 54.19% drop from the previous day’s volume. Despite this, the stock ranked 100th in trading activity among U.S. equities. The share price fell by 2.05% to close at $248.11, marking a continuation of its recent volatility. The stock’s performance contrasts with its year-to-date return of 130.41%, significantly outpacing the S&P 500’s 16.50% gain, and its 1-year return of 183.39%, compared to the benchmark’s 19.61%.

Key Drivers

Cloudflare’s recent performance was driven by two primary factors: robust third-quarter earnings and a strategic upgrade from Citigroup. The company reported a 31% year-over-year revenue increase to $562 million, accompanied by a 91% reduction in net loss to $1.29 million from $15.3 million in the same period last year. These results supported an upward revision of full-year 2025 revenue guidance to $2.142 billion–$2.143 billion, up from $2.113 billion–$2.115 billion, and projected earnings per share of $0.91. The improved profitability and revenue outlook signaled to investors that Cloudflare’s cost-cutting measures and product diversification are gaining traction.

The second catalyst was Citigroup’s upgrade of Cloudflare to a “Buy” rating, accompanied by a raised price target from $255 to $318. This move underscored the firm’s confidence in Cloudflare’s ability to sustain growth amid a competitive tech landscape. The upgrade coincided with the stock reaching a 52-week high of $254.29 during intraday trading, reflecting heightened investor optimism. Citigroup’s analysis highlighted Cloudflare’s leadership in web infrastructure and cybersecurity, as well as its competitive positioning against peers like Akamai and Amazon Web Services.

A third factor was the company’s strong operational performance. Cloudflare projected fourth-quarter revenue of $588.5 million–$589.5 million and operating income of $83 million–$84 million, outpacing earlier forecasts. These figures reinforced the narrative of a turnaround, particularly as the company transitions from a net loss to profitability. The stock’s ability to maintain elevated levels despite a 2.05% decline on the day suggests underlying demand from investors capitalizing on the firm’s improving fundamentals.

However, the report also noted a potential headwind: the departure of Cloudflare’s head of product and engineering, CJ Desai, to another publicly traded company. While the article did not directly link this transition to the stock’s performance, it raised questions about leadership continuity. Nonetheless, the broader market reaction appeared to prioritize the firm’s financial progress and analyst sentiment over such operational shifts.

In summary, Cloudflare’s recent stock movement was primarily fueled by its earnings outperformance, analyst upgrades, and revised growth expectations. The combination of these factors positioned the stock as a focal point for investors seeking exposure to high-growth tech plays, despite short-term volatility. The company’s ability to sustain these momentum drivers will likely determine its trajectory in the coming quarters.