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- Meta's earnings could offer fresh clues on Muse AI adoption, while Western Digital's results will shed light on memory demand. - Nscale faces investor pushback over its targeted $30 billion IPO valuation amid data center delays. - Nvidia, Cloudflare and Oracle will spotlight their latest AI and cloud computing developments. Third-quarter earnings season continues this week, with reports from Netflix (NFLX), Meta Platforms (META), International Business Machines (IBM), and Western Digital (WDC) expected to set the tone for the tech trade. Meta's report will be a key focus, with investors looking for fresh insights into its Muse AI tools, while Western Digital's results could offer clues on the durability of memory demand. Tech investors will also track product updates from Nvidia, Cloudflare and Oracle at their respective events. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Here are the key reports and events to watch out for: Nscale is reportedly facing opposition to the $30 billion valuation it seeks for its IPO, Bloomberg reported Sunday, citing people familiar with the matter. A group of investors has recently urged a valuation in the $16 billion to $19 billion range, which would be more likely to appeal to buyers. The report follows Microsoft, one of the company's biggest customers, pulling out of a UK data center deal after the site faced delays due to power constraints. Netflix (Oct. 20): Netflix will kick off consumer tech earnings this season. Third-quarter revenue is expected to rise 12% to $12.88 billion, and EPS is expected to rise 40% to $0.82 per share, according to Koyfin. Meta Platforms, IBM and LAM Research (Oct. 21): Investors will review Meta's report more closely than usual for comments on the adoption and updates for its Muse AI tools. The social media giant's revenue is expected to rise 24% to $63.39 billion, and EPS is expected to decline 7% to $6.76 per share. IBM's Q3 topline is expected to rise 3.3% to $16.84 billion and EPS to increase 8% to $2.87 per share. LAM Research's fiscal Q1 revenue is expected to rise 53% to $8.13 billion and EPS to increase 73% to $2.18 per share. Western Digital and Spotify (Oct. 22): Investors will look to Western Digital's report for clues on the durability of memory demand, a key focus for the semiconductor industry. Analysts expect fiscal Q1 revenue to rise 47% to $4.14 billion and EPS to increase 129% to $4.08 per share. For Spotify, Q3 revenue is expected to rise 17% to $5.59 billion and EPS to decrease 13% to $3.19 per share. Cloudflare Connect 2026 (Oct. 19–21, San Francisco): The event will focus on AI agents, cybersecurity and network infrastructure. Speakers include Cloudflare CEO Matthew Prince, AMD CTO Mark Papermaster and AI researcher Fei-Fei Li. Nvidia GTC Berlin (Oct. 20–22, Berlin): The event will cover AI infrastructure, robotics and accelerated computing. CEO Jensen Huang will deliver the keynote, alongside leaders from Mistral AI, Siemens and Deutsche Telekom. Oracle AI World (Oct. 25–28, Las Vegas): The event will showcase enterprise AI, AI agents and cloud computing. Nasdaq-100 Gainers | Nasdaq-100 Losers Intuit (up 7.4%) | Rocket Lab (down 25.5%) Paychex (up 7.4%) | Lumentum (down 25.3%) T-Mobile US (up 7.1%) | Nebius (down 25.2%) Last week, the Invesco QQQ Trust Series 1 (QQQ) fell 5.5% and the iShares Semiconductor ETF (SOXX) declined 11.8% – their worst weekly moves since March. The software-focused iShares Expanded Tech-Software Sector ETF (IGV) dropped 7.4%. For updates and corrections, email newsroom[at]stocktwits[dot]com. Read Next: INTC, AMD, MU, SNDK: US Chip Stocks Rebound After Worst Week Since March Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - MMM Stock Jumps Overnight: Amazon Could Own A Piece Of 3M If It Spends $6B On Its Data Center Products - Tesla Stock At $4,400? Cathie Wood's ARK Pins Hopes On Robotaxis, Sees SpaceX Merger In 5 Years - An Oil Refiner Is Beating Nvidia This Year: Analyst Thinks It Can Rally 16% More From Here

CoreWeave dropped 5% after Burry closed his short without triggering a rally, and the bear case has since shifted from demand concerns to its 8.94 debt-to-equity ratio. NVIDIA confirmed Vera Rubin racks in full production at CoreWeave and Oracle, with Jensen Huang declaring AI has reached its inflection point. Cloudflare's asset-light model kept it nearly flat while leveraged peers sold off, posting 35.9% revenue growth without borrowing to build data-center capacity. Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Oracle didn't make the cut. Enter your email to see the names that beat ORCL. The report is free. Enter your email and see if any of your stocks made the cut. Shares of CoreWeave (NASDAQ:CRWV) are down 5% to $90.27 midday Thursday, sliding even after Michael Burry, the investor known for The Big Short, closed his highest-profile bearish bet against the AI infrastructure complex. The move stands out because that kind of catalyst usually lifts a heavily shorted AI name. The failure to rally is itself the signal. Oracle (NYSE:ORCL) stock is down 3% to $157.43 heading into tonight's fiscal Q1 2027 earnings release. Meanwhile, Cloudflare (NYSE:NET) shares are trading steady, off just 0.2% to $313.57. The cloud group is separating around balance-sheet risk today. The First Trust Cloud Computing ETF (NASDAQ:SKYY) is down 0.1%. For broader tech-sector context, the Invesco QQQ Trust (NASDAQ:QQQ) is off by 0.74%, so CRWV and ORCL are down more than the NASDAQ 100. The Burry news was widely expected to lift AI-exposed names. NVIDIA (NASDAQ:NVDA) was the underlying, and the position was the market's most visible AI-related short. Through his firm Scion Asset Management, Burry closed his December put options on the chipmaker without rolling into later contracts, and he has said the exit shouldn't be read as optimism. Free Report, Just Released Why Didn't ORCL Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And ORCL didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → CoreWeave Chief Executive Michael Intrator stated on Wednesday that the company's newer data-center deals carry more operating margin than earlier ones and that "the deal-level economics are excellent," because customers are paying more for AI compute faster than input costs are rising. The demand data supports him: CoreWeave's Q2 2026 revenue rose 112.3% year over year to $2.58 billion, with revenue backlog around $104 billion. The bear case is a balance-sheet argument. 24/7 Wall St. calculates that CoreWeave carries a debt-to-equity ratio of 8.94, and interest expense reached $640 million in Q2 against free cash flow of -$5.74 billion after $6.42 billion in capex. Supplier data still points to intense end demand. NVIDIA's most recent report placed Vera Rubin racks in full production at CoreWeave, Google Cloud, Microsoft (NASDAQ:MSFT) Azure, Oracle Cloud Infrastructure, and Nebius (NASDAQ:NBIS); CEO Jensen Huang stated that "AI has reached its inflection point" and that compute is revenue (we profiled seven of the picks-and-shovels suppliers powering that buildout, beyond the chipmakers, in a free report here). Oracle reports its fiscal Q1 2027 results after today's close. Julia Spina, Head of Research, North America at IG Group, noted that options are pricing in an 11% move, or $18 per share, around the report, and calls are trading richer than puts. That's the reverse of the usual pattern, with call premiums bid above puts into the print. Funding is a major concern for Oracle. Guggenheim flagged that Oracle plans to raise $40 billion in fiscal 2027 for its AI buildout, its credit-default swaps have recently reached record highs, and analysts have pointed to financing risk, reported delays at some AI data-center sites, and heavy backlog concentration in a single AI lab. Still, Oracle's demand backdrop is strong. The most recent quarter showed Cloud Infrastructure revenue up 93% year over year to $5.79 billion, and remaining performance obligations reached $638 billion, up 363% year over year. The question is whether that backlog gets financed cleanly enough to translate into margin expansion. Furthermore, sentiment into the report leans constructive. Polymarket traders are pricing the "beat quarterly earnings" outcome at 0.79, and a composite Oracle sentiment score sits at 74.54 with a bullish direction. The financing question remains open after that read, though it does explain why the calls are bid. Cloudflare stock rallied earlier this week on an OpenAI security partnership and is holding those gains today. It sells AI-adjacent services across an existing network rather than funding fresh data-center capacity with debt, which is why its stock is barely moving while the capital-heavy names sell off. Revenue in Cloudflare's most recent quarter accelerated to $696.06 million, up 35.9% year over year, and CEO Matthew Prince stated that "Cloudflare sits at the center of this paradigm shift" as web traffic moves to AI agents. Guidance is also lifting. Cloudflare raised its FY2026 outlook to $2.864 billion to $2.87 billion in revenue and non-GAAP EPS of $1.25 to $1.26. The asset-light model separates it from the operators funding physical GPU capacity through debt markets. Oracle's earnings release after the closing bell could set the tone for the AI infrastructure trade into Friday. Investors can watch for whether management addresses the $40 billion financing plan directly and how much of the backlog remains tied to a single customer, according to Guggenheim. For CoreWeave, the read is starker. A stock that can't rally on its best-known bear covering and a CEO publicly defending deal economics is telling you the argument has moved from demand to the balance sheet, and one's position sizing should reflect that leverage. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And ORCL wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and >;elm:context_link;itc:0;sec:content-canvas" data-yga="{"yLinkElement":"context_link","yModuleName":"content-canvas","yLinkText":"see which stocks made the list -->"}" class="link ">see which stocks made the list -->> Contact [email protected] for any questions or corrections.

Snowflake drops 4% ahead of earnings and Datadog falls 6% with no catalyst, pointing to profit-taking on crowded high-beta software positions rather than company-specific news. IGV slides 3% while QQQ gains 0.2%, confirming traders are rotating out of software specifically rather than selling technology as a whole. Datadog's 65% and Snowflake's 46% YTD gains gave traders thick cushions to trim, making positioning the clearest driver of today's selloff. Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now. The report is free. Enter your email and see if any of your stocks made the cut. Software is the day's clearest sore spot at midday, with a handful of the year's biggest AI-era winners giving back ground even as the broader large-cap technology tape barely moves. That split is the actual story of the session, and it explains why several unrelated names are sinking together while the index stays quiet. The iShares Expanded Tech-Software Sector ETF (NASDAQ:IGV) is down 3% to $103.06, tracking software as a distinct slice of the market. Meanwhile, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.2% to $709.20, which leaves the NASDAQ 100 slightly higher on the session. That contrast tells the session's clearest story, since money is leaving software as a group rather than technology as a whole. Snowflake (NYSE:SNOW) stock is down 4% to $306.22 ahead of its fiscal Q2 2027 report scheduled for after today's close. Meanwhile, Datadog (NASDAQ:DDOG) shares are falling harder, down 6% to $211.29, with no earnings scheduled and no fresh company headline attached to the move. Cloudflare (NYSE:NET) stock is also down 4% to $273.09, rounding out a trio where the deepest cuts are landing on the highest-flying names in the space. Free Report, Just Released Did Any of Your Stocks Make the Top 10 List? It is an uncomfortable question, and there is now an answer to it. 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. Open your account and look at what you own. Some of it you bought for a reason you could still defend today. Some of it you bought years ago for a reason you can no longer remember. The report is free. Put the ten next to what you own and find out which is which. Enter Your Email and See the Ten → Free from 24/7 Wall St. It lands in your inbox. Snowflake is confirmed to report fiscal Q2 2027 results after today's close, and that scheduled event is real and looming. Yet the pattern across the three tickers does not fit a straightforward earnings-nerves read, because Datadog and Cloudflare are not on the calendar today and are still moving lower in step with Snowflake. If nerves alone were the story, the two non-reporters would be somewhere near the flat line rather than leading the group down. No fresh company-specific headline explains today's declines in Datadog or Cloudflare, and the broader software fund is weakening at the same time. The cleaner explanation is a rotation out of high-multiple software rather than a narrative tied to any one ticker, and that framing lines up with what the ETF split is showing on the tape. Snowflake's late-day report is a coincidence of timing more than a driver of what has already happened this morning. The software group had rebuilt momentum coming into September after a strong August recovery, and today's action looks more like traders locking in profits than a change in the AI narrative that has powered the group all year. When the biggest decliners are also the biggest recent winners in a sector, positioning tends to explain more of the day than fundamentals do. That is the read most consistent with today's ticker-by-ticker picture across Snowflake, Datadog, and Cloudflare. Each of the three featured names is dropping further than the software fund itself, which is the fingerprint of the most expensive names in a sector being sold first. Snowflake stock was up 46% year to date (YTD) through Tuesday's close. Datadog stock was up 65% and Cloudflare stock was up 45% over the same window, giving each of them a thick cushion of prior gains for traders to trim into strength. Datadog's leading decline is the most instructive detail in the group today. With no report scheduled and no announcement circulating, the deepest cut is landing on a name with nothing on its own calendar to blame for the move. Traders trimming their exposure to the year's crowded winners looks like the simpler explanation, and profit taking of this shape typically hits the highest-beta software names before it spreads to steadier corners. Additionally, the QQQ's slightly-higher print today underscores that this is not a technology-wide flush. Large-cap tech is holding up while the software sleeve inside it is being sold down, which is what a targeted rotation looks like. That is rotation, not a sector-wide verdict on the AI trade that has driven names like Snowflake, Datadog, and Cloudflare to their current levels. Snowflake's fiscal Q2 2027 release and its conference call after today's close is the next scheduled event that can reset sentiment across the group. A clean report may steady IGV and pull the peer trade higher with it, and a softer one can extend today's move into the next session for Datadog and Cloudflare as well. Either outcome will be measured against a group already in a fragile spot. Traders can watch for whether IGV holds its recent range into the close, since the sector fund's behavior is doing more to explain today's action than any single company inside it. A finish below where the fund started the week would strengthen the rotation read and put more pressure on the peer group heading into the Snowflake report tonight. Investors weighing their exposure to the highest-multiple software names in IGV may want to lean toward moderate position sizes into tonight's report and keep dry powder for the reaction. The group's leaders have already moved sharply against their holders today, and the market shifted quickly enough to justify tighter risk controls on those positions. Snowflake's report will resolve part of the uncertainty for the software complex, though probably not all of it. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research point to as the 10 best stocks to buy right now, and it's free. Read more here and >;elm:context_link;itc:0;sec:content-canvas" data-yga="{"yLinkElement":"context_link","yModuleName":"content-canvas","yLinkText":"see which stocks made the cut -->"}" class="link ">see which stocks made the cut -->> Contact [email protected] for any questions or corrections.

The firm also bought 69,585 shares of Cerebras Systems and 47,794 shares of Cloudflare. Wood’s asset management firm sold 37,977 shares of competing chipmaker Advanced Micro Devices. Broadcom is expected to post its third-quarter (Q3) earnings results on Sept. 2 after market hours. Cathie Wood’s ARK Investment Management loaded up on Broadcom Inc.’s (AVGO) shares on Wednesday, coinciding with chipmaker Nvidia Corp.’s (NVDA) earnings release. Across its ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ), and ARK Next Generation Internet ETF (ARKW), the asset management firm purchased a total of 57,705 AVGO shares, worth more than $20 million as of the last close. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox The firm also bought 69,585 shares of Cerebras Systems Inc. (CBRS) and 47,794 shares of Cloudflare Inc. (NET). AVGO stock was up nearly 2% in the overnight session late Wednesday. In addition to adding the aforementioned technology stocks, Wood’s asset management firm sold 37,977 shares of Advanced Micro Devices Inc. (AMD), another competing chipmaker. ARK also sold shares of Tempus AI Inc. (TEM), Twist Bioscience Corp. (TWST), Robinhood Markets Inc. (HOOD), Brera Holdings PLC (SLMT), CrowdStrike Inc. (CRWD), and Roblox Corp. (RBLX). Broadcom is expected to post its third-quarter (Q3) earnings results on Sept. 2 after market hours. RBC Capital analyst Srini Pajjuri maintained a ‘Sector Perform’ rating and $400 price target on AVGO shares ahead of its Q3 results. According to The Fly, the firm said that it expects a slight beat and raise for the quarter, driven by the company's Networking business. The analyst also noted that Broadcom's TPU share remains a focus amid competition from MediaTek and Alphabet Inc.’s (GOOG, GOOGL) Google, which recently forged a supply agreement with Marvell Technologies Inc. (MRVL). RBC also added that Broadcom's long-term contract and expanding TPU adoption beyond Google should support continued growth for the next few years. According to data from Fiscal.ai, analysts expect the company to post revenue of $29.43 billion, up 84.5% compared to $15.95 billion reported in the previous comparable quarter. Earnings per share (EPS) is expected to come in at $3.24, up from $1.69 posted in Q3 2025. Nvidia reported second-quarter (Q2) revenue of $96.2 billion, more than doubling from a year earlier, while adjusted EPS reached $2.22, beating Wall Street estimates. Data center revenue grew to $89 billion, ahead of expectations, with Alphabet and Amazon among key hardware adopters. For the third quarter, Nvidia expects revenue of $108 billion, above the $103.9 billion consensus, with gross margins around 74%. On Stocktwits, retail sentiment around AVGO stock was ‘bullish’ at the time of writing, with an increase of about 22% in chatter over 24 hours, as per platform data. One user said, “$AVGO Monster in making.” Another user said, “UP quite a bit in overnight trading. More than usual . Tomorrow should be a good day.” A third user said, “$AVGO loading zone!!! Lots of analysts came out with price targets above 500 recently. see you at 450 in 2 weeks time post killer Earnings report.” AVGO shares have gained more than 18% in the last one year. For updates and corrections, email newsroom[at]stocktwits[dot]com. Aashika Suresh has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: ZenaTech Named 2026 “Drone Technology of the Year” Winner by AgTech Breakthrough Awards for Its ZenaDrone Precision Agriculture Solutions INFQ Stock’s Quantum Rally Gets A NASA Boost: $20M Contract Has Retail Chasing Massive Upside CRWD Stock Sees Biggest Single-Day Surge In Over A Year: Wall Street Sees ‘Mythos Moment’ Boosting Cybersecurity Demand, But One Analyst Is Skeptical

Akamai Technologies, Inc. AKAM reported second-quarter 2026 results that showed continued demand for its AI infrastructure and cybersecurity offerings. Revenue and adjusted earnings topped the Zacks Consensus Estimate, while higher operating expenses and infrastructure investments pressured profitability. Second-quarter revenue increased 5% year over year to $1.1 billion, exceeding the Zacks Consensus Estimate of $1.09 billion. Non-GAAP earnings came in at $1.59 per share, ahead of the $1.58 consensus estimate. Revenue increased despite continued pressure on the Delivery business.Non-GAAP net income declined 6% year over year to $235.8 million, while non-GAAP income from operations fell 12% to $270.7 million. Adjusted EBITDA declined 6% to $416.1 million, highlighting the profitability impact of higher investment and operating costs. Akamai Technologies, Inc. price-consensus-chart | Akamai Technologies, Inc. Quote Cloud Infrastructure Services revenue rose 39% year over year to $99.3 million from $71.5 million. The increase reflected demand for AI infrastructure, higher GPU deployments and continued adoption of Akamai’s distributed cloud platform.Akamai has signed more than $2.8 billion of multiyear Cloud Infrastructure Services commitments year to date, including a four-year agreement worth more than $600 million with a U.S.-based technology company for robotics development. Management now expects overall revenue growth to accelerate into the low teens in 2027.Competition remains a key consideration, with Cloudflare, Inc. NET and NVIDIA Corporation NVDA investing heavily in AI infrastructure, networking and cloud technologies. Continued innovation and differentiation will be important for Akamai to strengthen its position as AI and cloud adoption accelerates. Security revenue increased 10% year over year to $604.4 million, supported by API Security, Web Application Firewall and Guardicore Segmentation. Management expects the Security portfolio to generate more than $2.4 billion of revenue in 2026.Workforce Protector, following the LayerX acquisition, expands Akamai’s Zero Trust capabilities around browser, SaaS and AI usage. The company is also seeing increased demand for security solutions as enterprises adopt AI applications and workloads. Akamai expects third-quarter revenue of $1.105 billion to $1.13 billion, with a non-GAAP operating margin of 24%-26%. For 2026, revenue guidance stands at $4.445 billion-$4.53 billion, with a non-GAAP operating margin of 25%-26% and non-GAAP EPS of $6.40-$7.05. Image Source: Zacks Investment Research The margin outlook reflects continued investment in cloud infrastructure. Capital expenditures reached $346.5 million in the second quarter, while management expects third-quarter capital expenditures of $475 million-$525 million as it expands capacity to support the Cloud Infrastructure Services pipeline. Akamai currently carries a Zacks Rank #4 (Sell), alongside a Value Score of D, Growth Score of F, Momentum Score of A and VGM Score of D. The Momentum Score indicates favorable recent momentum characteristics, but the weaker Value, Growth and VGM Scores point to less favorable characteristics across those styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Style Score framework treats the Zacks Rank as the first step in stock selection and states that investors should not buy a stock with a Zacks Rank #4 or #5 even if it has an A or B Style Score. The framework also emphasizes that Style Scores are designed to complement the Zacks Rank rather than replace it.Akamai’s Q2 results strengthen the case for AI infrastructure and cybersecurity as growth drivers. However, Delivery declines, margin pressure and substantial investment requirements remain material offsets. The earnings update supports monitoring the AI growth trajectory while waiting for clearer evidence that the new businesses can translate into sustained earnings growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cathie Wood, the founder of investment firm Ark Invest, has flagged what she sees as a blind spot in how Wall Street is covering Cloudflare, a major internet infrastructure company. Writing on X on August 9, Wood said she found it striking that Cloudflare's latest earnings call included no mention of, or questions about, stablecoins, which she called the "monetization enabler of this new world order." Stablecoins are cryptocurrencies designed to hold a steady value, usually pegged to the U.S. dollar. Wood argued that research teams divided by sector, such as those covering software and cybersecurity separately from financial services, need to work together as these technologies increasingly overlap. Related: Shark Tank's Kevin O'Leary reveals one asset that could outperform gold Her point lands because Cloudflare, best known for speeding up and protecting websites, has been slowly moving deeper into stablecoin-powered payments. On July 1, the company announced its Monetization Gateway, a tool that lets Cloudflare customers charge for access to web pages, datasets, APIs, or other digital assets. At launch, those payments settle in stablecoins using x402, an open payment protocol Cloudflare is building with a coalition of more than 25 industry partners. Cathie Wood trims Ethereum exposure on 11th anniversary Popular ATM suspended after basic reporting Strategy stages comeback, surges to $100 The company went further on August 4, unveiling programmable stablecoin wallets for AI agents, which let autonomous software hold funds and pay for online services on their own. Even Cloudflare's earnings framing pointed that way. Announcing results on August 6, co-founder and CEO Matthew Prince said the web is being rewritten for machine-to-machine traffic and described Cloudflare as building "the payment rails for the Agentic Internet," without tying that vision explicitly to stablecoins. That gap is what caught Wood's attention. Despite Cloudflare's steady push into stablecoin-powered payments, the topic went unmentioned on the call itself, an omission she found hard to square with where the company appears to be heading. Meanwhile, Ark itself bought Cloudflare shares on August 7, adding roughly 114,000 shares through its flagship Ark Innovation ETF, as per data shared on X by Ark Invest Tracker. The stock had surged to a 52-week high of $324.73 last Friday after a strong second quarter, in which revenue rose 36% year-over-year to $696.1 million and the company lifted its full-year outlook to between $2.86 billion and $2.87 billion. Cloudflare traded around $302 on Monday, up 0.33%, after announcing plans to raise about $2.175 billion through convertible notes, a move that raised some concern about share dilution. Related: Top economist says Bitcoin has one flaw gold will never have This story was originally published by TheStreet on Aug 10, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

Interested in Cloudflare, Inc.? Here are five stocks we like better. Strong Q2 growth: Cloudflare reported revenue of $696.1 million, up 36% year over year, supported by customer additions, higher enterprise adoption and 120% dollar-based net retention. Revenue from customers spending more than $100,000 annually grew, with 4,698 such customers at quarter-end. Profitability and outlook improved: Non-GAAP operating income rose 33% to $96.1 million, while free cash flow increased to $56.4 million. Cloudflare projected third-quarter revenue of $736 million to $737 million and raised or reaffirmed full-year revenue guidance of $2.864 billion to $2.870 billion. AI and Workers remain key growth drivers: Nearly 2 million developers joined the Workers platform during the quarter, bringing the total above 7.4 million. Management is positioning Cloudflare for rising AI-agent traffic through developer tools, agent monetization and payment products, as well as security offerings for AI workloads. Cloudflare’s Beat-and-Raise Quarter Puts Its AI Edge Story in Focus Cloudflare (NYSE:NET) reported second-quarter 2026 revenue of $696.1 million, up 36% from a year earlier, as the company cited accelerating customer growth, expanding adoption of its Workers developer platform, and demand for products supporting AI-related workloads. Chief Executive Officer Matthew Prince said the company added more than 80,000 paying customers during the quarter, bringing year-over-year paying-customer growth to 74%. Cloudflare ended the period with 4,698 customers spending more than $100,000 annually, a 27% increase from the prior year. The company added 282 such large customers during the quarter and 986 over the past 12 months, its highest annual net addition total for that customer segment. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Dollar-based net retention reached 120%, up two percentage points sequentially and six percentage points year over year. Large customers accounted for 73% of quarterly revenue, compared with 71% in the second quarter of 2025. Cloudflare reported non-GAAP operating income of $96.1 million, up 33% from $72.3 million a year earlier. Its non-GAAP operating margin was 13.8%, improving 240 basis points sequentially but declining 30 basis points year over year. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High A $1.5 Billion Wake-Up Call for Every AI Company on Wall Street Gross margin was 73.1%, up 30 basis points from the first quarter and down 320 basis points from a year earlier. Chief Financial Officer Thomas Seifert said the company continued to see more network costs allocated to cost of revenue as paid traffic grew relative to free traffic, although he said that trend was beginning to stabilize. Seifert said Cloudflare expects gross margin to stabilize around current levels, while total unit economics improve through the remainder of the year. Free cash flow was $56.4 million, or 8% of revenue, compared with $33.3 million, or 6% of revenue, in the prior-year period. Cloudflare ended the quarter with $4.2 billion in cash equivalents and available-for-sale securities. Remaining performance obligations totaled $2.732 billion, up 7% sequentially and 38% year over year. → No Hangover: Revisiting Microsoft One Week After Earnings The company reported non-GAAP net income of $107.8 million, or $0.29 per diluted share. Seifert said the quarter included $151 million in severance and other restructuring charges, including $99 million paid during the period. Cloudflare now expects up to $165 million of restructuring charges for the full year, with up to $130 million expected to be cash-related. Third-quarter revenue is expected to be $736 million to $737 million, representing 31% year-over-year growth. Third-quarter operating income is expected to be $129 million to $130 million. Full-year revenue is expected to be $2.864 billion to $2.870 billion, or 32% growth. Full-year operating income is expected to be $443 million to $445 million. Cloudflare expects full-year diluted non-GAAP earnings per share of $1.25 to $1.26. Prince said Cloudflare added nearly 2 million developers to its platform in the second quarter, bringing its total to more than 7.4 million. The quarterly developer addition exceeded the 1.5 million developers the company added during all of 2025, according to Prince. The company said its Workers platform is becoming a more meaningful contributor to customer adoption and revenue. Prince said Workers is attracting developers building AI agents because of its lightweight architecture, rapid deployment capabilities and usage-based cost structure. He added that product-led adoption is growing alongside enterprise sales activity, with larger contracts increasingly incorporating the developer platform. Seifert said Workers products remain Cloudflare’s fastest-growing product area, followed by its SASE and Zero Trust offerings. He also said the company’s revenue mix is evolving beyond a traditional ratable software-as-a-service model toward a mix that includes consumption arrangements, pool-of-funds contracts and “T-shirt sizing” structures. Prince highlighted several customer contracts involving application services, Zero Trust, network security and Workers. These included a five-year, $31.8 million contract with a digital-native media company; a three-year, $11 million agreement with a European Global 2000 technology company; and a one-year, $7.5 million pool-of-funds deal with a generative AI company for the developer platform. Prince said more than 50% of traffic across Cloudflare’s network was non-human for the first time during the second quarter. He said the company expects machine-to-machine traffic to continue expanding rapidly as AI agents increasingly access websites, APIs and other online resources. Cloudflare said it is developing infrastructure and commercial tools intended to support what Prince called the “agentic Internet.” Since the beginning of the third quarter, the company has introduced Monetization Gateway, Wallets and cloudflare.pay. Prince said those offerings are designed to enable content owners and other businesses to charge for resources accessed by AI agents and to allow autonomous payment and identity verification between buyers and sellers. Prince said Cloudflare’s approach differs from infrastructure providers focused on leasing commodity compute or GPU capacity. Rather than participating in what he described as an AI infrastructure “arms race,” he said Cloudflare is focused on delivering work efficiently across its global network and maximizing utilization of its capital investments. “We’re in a very different business than the hyperscalers,” Prince said, arguing that Cloudflare’s model centers on selling completed work rather than renting servers. Cloudflare also said it sees a growing opportunity in securing AI agents. Prince said large organizations are increasingly asking how to deploy AI securely, and he expects agent security to become an important consideration for customers evaluating Zero Trust and SASE platforms. Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack. In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cloudflare Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.