What's Going On With Cloudflare Stock Today?

Cloudflare, Inc. (NYSE:NET) shares are trading lower on Friday as investors digest the company raising capital via zero-interest convertible notes.

Cloudflare Raises $2.5 Billion

Cloudflare issued $2.5 billion of 0% convertible senior notes due 2031, including the full exercise of a $325 million additional-purchase option. The deal generated about $2.46 billion in net proceeds.

The notes mature Aug. 15, 2031 and initially convert at about $496.94 per share, a roughly 60% premium to Cloudflare’s $310.59 closing price on Aug. 10. The company can settle conversions in cash, shares or both.

Proceeds And Dilution Protection

Cloudflare used $259.5 million for capped call transactions to reduce potential dilution or conversion-related cash payments. The capped calls have an initial cap price of about $854.12 per share.

The remaining proceeds may fund working capital, capital expenditures, debt repayment and potential acquisitions or strategic transactions.

Redemption Terms

Cloudflare generally cannot redeem the notes before Aug. 20, 2029, except under a cleanup provision. It can also redeem all remaining notes if outstanding principal falls below $200 million.

The notes join Cloudflare’s existing $1.125 billion of 0% notes due 2026 and $2 billion of 0% notes due 2030.

Critical Price Levels To Watch For NET Stock

Friday’s pullback comes with NET still well above its key trend gauges, trading about 11.5% above the 20-day SMA at $287.12 and roughly 47% above the 200-day SMA at $217.73. That keeps the broader uptrend intact, but also raises the risk of sharper pullbacks.

Momentum remains constructive, with MACD above its signal line and a positive histogram, suggesting selling pressure is easing and buyers are regaining control.

The broader setup also remains bullish, with the 20-day SMA above the 50-day SMA and the May golden cross still intact. With NET near the top of its 52-week range, traders will be watching for either a breakout above the highs or a deeper mean-reversion move.

• Key Resistance: $332.22 — The 52-week high and main breakout level.
• Key Support: $292.54 — The 20-day EMA and first meaningful support zone.

Wall Street’s Latest Take on NET

The stock carries a Buy rating with an average price forecast of $341.68. Recent analyst moves include:

• Citigroup: Buy (Raises Target to $400.00) (Aug. 10)
• Susquehanna: Neutral (Raises Target to $300.00) (Aug. 10)
• Scotiabank: Sector Outperform (Raises Target to $390.00) (Aug. 7)

NET Price Action: Cloudflare shares were down 3.21% to $320.21 at the time of publication on Friday. The stock is approaching its 52-week high of $332.22, according to Benzinga Pro data.

Photo: Piotr Swat / Shutterstock