Cloudflare Stock Slides as Jefferies Cuts Target
Jefferies analyst Joe Gallo lowered his Cloudflare price target to $320 from $350 while keeping a hold rating.
Updated on Nov. 2, 2026 in Cybersecurity
Cloudflare stock fell as much as 6% early Monday after Jefferies lowered its price target to $320 from $350 and maintained a hold rating. The stock was down 3.5% as of 1:44 p.m. ET.
Why it matters
Gallo believes the bar for Cloudflare's current quarter may be set too high, raising questions about whether results can meet elevated expectations. The move comes as the company has beaten Wall Street estimates in each of the past four quarters.
Consensus estimates call for $739 million in revenue, up 32% year over year, and adjusted EPS of $0.34, up 26%. Company guidance of $736 million to $737 million sits slightly below the consensus revenue figure, and the results have not yet been reported.
The players
Cloudflare
A San Francisco-based internet infrastructure company providing content delivery, cybersecurity, and cloud services to websites and applications worldwide.
Jefferies
A New York-based global investment banking and capital markets firm whose research division publishes equity analyst ratings and price targets.
Joe Gallo
A Jefferies analyst who covers technology stocks and issued the revised hold rating and price target on Cloudflare.
The details
Cloudflare deployed protective measures last month against a PHP website vulnerability ahead of its public disclosure. Gallo maintained his hold rating while lowering the target, citing expectations for higher demand for the company's cloud services in the current quarter.
Timeline
Last month: Cloudflare deployed protective measures against a PHP vulnerability.
Friday: Cloudflare closed at the baseline used for the 14% upside calculation.
Monday: Cloudflare stock fell as much as 6% in early trading.
Thursday: Cloudflare will report financial results after the market close.
Market Landscape
Cloudflare has surpassed Wall Street consensus estimates in each of the past four quarters, establishing a pattern that now raises expectations for the upcoming report. Jefferies' revision suggests analysts are questioning whether that streak of beats can continue at the current valuation.
Investors holding or considering Cloudflare shares face a stock that has pulled back ahead of a scheduled earnings release. Those deciding whether to buy before Thursday's report now have a lower analyst target to weigh against the stock's recent move.
The takeaway
Expectations for a stock can shift quickly ahead of earnings, so a lowered price target is worth reading alongside the company's own guidance. Compare the consensus numbers with the company's forecast range before drawing conclusions.
What happens next
Cloudflare will report financial results after the market close on Thursday, giving investors the first test of whether it can meet the revised expectations.
Further reading
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