AI Infrastructure Leader Cloudflare Sees $10 Billion Market Cap Vanish in a Day

Shares of Cloudflare Inc. (NYSE: NET) plunged 10.61% on May 6, closing at $222.20 on the New York Stock Exchange and cutting its market capitalization to about $70.6 billion. In a single day, it erased roughly $6.8 billion in value, equivalent to around KRW 10 trillion.

With Cloudflare set to report Q1 2026 earnings after the market close on May 7, options-market activity suggests investors are braced for significant stock swings, reflecting both optimism and caution.

In February’s Q4 2025 results, the company delivered 34% revenue growth and highlighted a strong backlog. It has since strengthened its “AI infrastructure platform” strategy by announcing April partnerships with Wiz, GoDaddy and Mastercard, and by launching new offerings—including AI agents and post-quantum encryption–based security and networking solutions.

Founded in 2009 and based in San Francisco, Cloudflare provides “connectivity cloud” services—such as CDN, web application firewall, DDoS protection, DNS and Zero Trust/SASE security—via its globally distributed network of data centers.

Since its NYSE debut in 2019, the company has stood out as a growth stock amid rising AI and cloud-security demand. At the same time, its high valuation has made its share price notably volatile around earnings releases.