Software Stocks Plummet Due to AI Fears... Cloud Security Stocks Lose 8 Trillion Won in a Day

On April 10, Cloudflare Inc. (NYSE: NET) shares plunged more than 13%, closing at $167.63 on the New York Stock Exchange. Its market capitalization fell to about $53.2 billion (roughly KRW 69 trillion), erasing around $6.2 billion (approximately KRW 8 trillion) of enterprise value in a single day.

The sell-off has been attributed to a European securities firm’s downgrade of peer software stocks and growing concerns that generative AI could upend existing SaaS and security business models—sentiment that spilled over into a broader software sector decline. Still, analysts note that Cloudflare’s fundamentals remain solid: in its recently announced fourth-quarter fiscal 2025 results, the company reported year-over-year revenue growth exceeding 30% and raised its full-year 2026 revenue guidance.

Headquartered in San Francisco, Cloudflare provides cloud security and content delivery network (CDN) services—including DDoS protection, CDN, zero-trust security, and edge computing—to websites worldwide. Leveraging its global network, the company is expanding edge infrastructure and a developer platform for AI applications and inference, positioning itself as a core internet infrastructure provider in the AI era.