Stock Track | Cloudflare, Inc. (NET) Plunges 5.26% in Pre-Market After Service Outage Disrupts Major Platforms

Stock Track12-05

Cloudflare, Inc. (NET) saw its shares drop 5.26% in pre-market trading following a service outage that disrupted access to its dashboard and related APIs, affecting major platforms like Coinbase, Shopify, and Zoom. The outage, which occurred early Friday, was resolved within hours, but not before causing significant inconvenience to users and sparking investor concerns.

The incident was caused by a change in how Cloudflare's firewall handles requests, implemented to mitigate a vulnerability in React Server Components. This marks the second such outage in less than a month, raising questions about the reliability of centralized infrastructure services. Cloudflare's shares initially fell as much as 6% in pre-market trading but later pared some losses after the company confirmed the issue was resolved.

Cloudflare's software is widely used by businesses globally to protect against traffic overload attacks, making outages particularly disruptive. The company has faced similar issues in the past, including a major outage in June 2022 that affected 19 data centers. Investors are closely monitoring the company's efforts to improve redundancy and prevent future incidents.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment