Cloudflare stock declined 9.6% on February 23-24, 2026. The company experienced a significant six-hour global service outage on February 20, 2026, affecting its Bring Your Own IP (BYOIP) services. The outage, which lasted from 17:48 UTC for six hours and seven minutes, was caused by an internal configuration update bug in the Addressing API that unintentionally withdrew customer BGP routes from the Internet, affecting 25 percent of all BYOIP prefixes globally. Despite announcing a major milestone in becoming the first SASE platform to support post-quantum encryption standards, the service disruption appears to have negatively impacted investor sentiment. The stock traded at approximately $161.51 on Monday, falling below its 50-day and 200-day moving averages.
Read full analysisCloudflare stock declined 9.6% on February 23-24, 2026. The company experienced a significant six-hour global service outage on February 20, 2026, affecting its Bring Your Own IP (BYOIP) services. The outage, which lasted from 17:48 UTC for six hours and seven minutes, was caused by an internal configuration update bug in the Addressing API that unintentionally withdrew customer BGP routes from the Internet, affecting 25 percent of all BYOIP prefixes globally. Despite announcing a major milestone in becoming the first SASE platform to support post-quantum encryption standards, the service disruption appears to have negatively impacted investor sentiment. The stock traded at approximately $161.51 on Monday, falling below its 50-day and 200-day moving averages.
Cloudflare provides cloud-based internet security, performance, and networking services used by millions of websites and applications worldwide, with its Workers platform increasingly positioned as AI infrastructure for running agents at the network edge. The company reported strong Q4 results with 34% revenue growth and recently announced a post-quantum encryption milestone, but its position straddling both cybersecurity and AI infrastructure makes it acutely exposed to the current wave of AI disruption fears hitting the security software sector following Anthropic's launch of Claude Code Security.