Cloudflare shares fell as much as 6% at the start of the week after Jefferies analyst Joe Gallo kept a hold rating but cut his price target to $320 from $350, still implying 14% potential upside from Friday's close. Gallo expects higher demand for the company's cloud services this quarter but thinks the bar may be set too high. Analyst consensus calls for revenue of $739 million, up 32%, and adjusted EPS of $0.34, up 26%, above management's revenue forecast of $736 million to $737 million. Cloudflare has beaten consensus estimates in each of the past four quarters and will report results after the close on Thursday. The article also cites Cloudflare's protective measures against a widely publicized PHP vulnerability, used by roughly 70% of websites, as an example of the importance of its cloud and security services.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
cloud computingcybersecurityearnings
Open a keyword to see other news on the same topic.
Related news
- ServiceNow, Fortinet Results Dent SaaS Sentiment: CRM, PANW, INTU, ADBE Slide In Sympathy
Software stocks fell after quarterly results from ServiceNow (NOW) and Fortinet (FTNT) fell short of high investor expectations, with added pressure from weakness in Alphabet's (GOOGL) core Search and Advertising business. Fortinet shares dropped over 25% as product revenue grew 37% in Q3, slower than 52% in Q2, dragging Palo Alto Networks (PANW) down 5.5%. ServiceNow reported adjusted EPS of $1, below the $1.17 analysts expected, though revenue rose 20.5% to $4.13 billion; its Q4 RPO growth forecast of 18.5% also trailed Bloomberg's 19% estimate. Salesforce (CRM) fell 4.7%, Intuit (INTU) and Adobe (ADBE) each slid about 2%, and the IGV ETF dropped 3%. Alphabet shares fell nearly 10% after Google Services revenue of $96.3 billion came in below the $98.5 billion expected.
- Small and Medium-Sized Businesses (SMBs) IT Spending Market Report 2026 | Capture $1.10T by 2030 as Microsoft, Amazon, Google, Dell, and Cisco Scale Cloud and Cybersecurity
The global SMB IT spending market is projected to grow from $734.13 billion in 2025 to $799.44 billion in 2026, a CAGR of 8.9%, and reach $1.10 trillion by 2030 at a CAGR of 8.5%. Key drivers include demand for flexible infrastructure, pay-as-you-go cloud services, managed IT services, and cybersecurity. According to Eurostat, the share of EU enterprises using paid cloud computing services rose by 7.42 percentage points in 2025 compared with 2023. In April 2026, Corporate Technologies launched the SMB Technology & Cyber Resilience Index, a quarterly benchmark measuring IT and cybersecurity performance for small and mid-sized businesses. North America led the market in 2025, while Asia-Pacific is expected to be the fastest-growing region.
- Datadog Sinks 12%, CrowdStrike Falls 4% Despite $6.3 Billion Binance Hack Spotlighting Cyber Defense; Palo Alto and Fortinet Slide 3%
Datadog fell 12% to $233.41 and CrowdStrike dropped 4% to $249.58 in afternoon trading, even though a $6.3 billion crypto theft at Binance highlighted the value of cyber defense. Palo Alto Networks and Fortinet also slid about 3%, with Fortinet extending a steep drop that followed its October 28 Q3 2026 report, which cited slower conversion of service billings and rising component costs. The article ties the sector's decline to hyperscaler earnings, including Alphabet's loss of more than $500 billion in market value after reporting negative $9.1 billion in free cash flow, which fueled worries about AI spending. Datadog is seen as especially exposed because its revenue grows with cloud usage, while CrowdStrike posted record net new ARR of $332.8 million in Q2 FY2027 but trades at 190x forward earnings.
- IBM (IBM) Debuts AI Agent Security Controls For Hybrid Cloud
International Business Machines (IBM) has introduced new identity and control features for AI agents across hybrid cloud environments, combining HashiCorp Vault, Agent Identity and watsonx Orchestrate. The release gives enterprises centralized control over AI agents, including least-privilege access, real-time credential revocation and sandboxed execution of workloads. IBM says the tools can support AI agents running on Amazon Bedrock, Microsoft Foundry and Google Gemini within a single governance framework.
- Oracle vs. Palo Alto Networks: Which Tech Stock Is the Better Buy in 2026?
The article compares Oracle (ORCL) and Palo Alto Networks (PANW) on financial health, growth and valuation. Oracle's trailing revenue was nearly $72 billion, up about 22%, but its trailing free cash flow was negative $29 billion due to heavy data center spending. Palo Alto's fiscal 2026 revenue was roughly $11.5 billion, up about 25%, while net income was about $307 million. The author leans toward Oracle, citing demand that exceeds cloud compute supply and $664 billion in contracted revenue yet to be delivered; analysts expect Oracle's earnings to grow 23% annually versus 12% for Palo Alto, with forward earnings multiples of 15 and 94, respectively. The article also flags Oracle's high leverage as a risk if AI demand slows.
- Zscaler vs. Alphabet: Which Cloud Security Stock Has the Edge?
Zscaler (ZS) and Alphabet (GOOGL) are both capitalizing on rising demand for cloud and AI security, with Zscaler focused on zero-trust security and Alphabet strengthening Google Cloud security through its Wiz acquisition. In fiscal Q4 2026, Zscaler’s revenue rose 24.9% to $898.2 million, non-GAAP EPS climbed 33.7% to $1.19 and ARR grew 25% to $3.77 billion, with more than 950 enterprises adopting Zero Trust Everywhere by quarter-end. The article calls slowing growth Zscaler’s biggest problem, noting that capex rose to 8.3% of fiscal 2026 revenue from 6.1% and free cash flow margin declined to 23% from 27%. For Alphabet, second-quarter 2026 revenue rose 24% to $119.8 billion and operating income increased 30% to $40.8 billion, with EPS of $9.11 mainly reflecting unrealized gains on its equity securities portfolio.
Related markets
Latest news
- Why Bristol Gate Canadian Equity Strategy Bought OR Royalties Inc. (OR) After Gold's Pullback
Bristol Gate Capital Partners' Q3 2026 investor letter for its Canadian Equity Strategy said the strategy underperformed the S&P/TSX Composite Total Return Index, which gained 1.6% in the quarter, as market returns concentrated in a few large stocks and rising bond yields weighed on defensive and rate-sensitive sectors. The strategy reallocated capital into OR Royalties (NYSE:OR), a precious-metals royalty company, after gold fell more than 25% from its January peak. The letter cited the company's cash margin of about 97% and minimal debt. As of October 30, 2026, OR shares closed near $31.89, with a market cap of about $5.88 billion, after a one-month return of about -7.13%. Hedge fund holders numbered 29 at the end of Q2, down from 35 in the prior quarter.
- Tom Lee Calls Bottom on AI Stock Selloff, Citing Tight Supply and Crypto Resilience
Fundstrat co-founder Tom Lee told CNBC the AI stock selloff has reached its bottom, arguing demand remains constrained by supply. He pointed to crypto's limited reaction to the Binance hack, initially estimated at about $6.3 billion, as a sign that many sellers have already exited. Despite strong AI demand, Intel shares plunged nearly 30% to $65.76 after a weak fourth-quarter forecast, due to manufacturing constraints and a weaker PC business. Bitcoin fell about 4% to roughly $76,400, and U.S. spot Bitcoin ETFs saw $643.2 million in outflows that day. Binance said about $3 billion of the affected assets had been frozen.
- Why Marvell Technology Plunged Today
Marvell Technology (MRVL) shares fell 10% by 12:54 p.m. EDT after the company agreed to buy optical laser maker Lumentum (LITE) in an all-stock deal valuing it at roughly $115 billion, a 24% premium. Investors worried Marvell may be paying a steep price, since Lumentum's stock had already risen sharply over two years and the purchase price was more than five times its share price a year earlier. The article says Marvell is drawn to Lumentum's indium phosphide laser technology, which could be combined with Marvell's digital signal processors and connectivity for next-generation AI systems as co-packaged optics spread inside server racks. It also notes AI stocks are volatile and have recovered from past selloffs, while investors fear the upcoming midterm elections.
- ServiceNow vs. UiPath: Consistent Revenue Growth vs. Volatile Seasonal Trends
The article compares quarterly revenue for ServiceNow (NOW) and UiPath (PATH) over the last eight quarters, with data as of November 1, 2026. ServiceNow shows consistent quarter-over-quarter sales growth, and its current remaining performance obligations (contract revenue to be recognized within the next 12 months) reached $13.7 billion, up 20.5% year over year. UiPath follows a more typical year-over-year growth pattern, with fiscal Q2 revenue of $410.3 million, up 13% from a year earlier, versus 17% in Q1 and 14% in Q4. It forecasts fiscal Q3 revenue of $440 million to $445 million. Its revenue often spikes near calendar year-end as businesses spend remaining IT budgets, adding to quarterly volatility.
- Bond Market Signals Distress About CoreWeave. Here's How To Profit From It.
As investors debate whether an AI bubble is about to burst, a few weak firms have been hit hard. CoreWeave's stock is one of them.
- This Will be John Ternus's First Earnings Call as CEO
John Ternus, described as the 'product guy,' will host his first earnings call as Apple CEO tonight, and all eyes will be on him.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.