TLDR
- Cloudflare stock jumped over 10% on Monday to $193.68 following weekend social media buzz around Clawdbot, an AI agent built on Anthropic’s Claude
- Developers are using Cloudflare Tunnels to securely host Clawdbot instances, while the company’s AI Gateway supports Claude for routing inference calls
- Wolfe Research notes that as agentic tools scale with more API calls and traffic, Cloudflare’s global edge network is positioned to capture that activity
- CEO Matthew Prince stated that 80% of leading AI companies already rely on Cloudflare’s services
- Cloudflare’s consumption-based Workers platform means increased agent activity could directly translate to revenue growth
Cloudflare Inc stock climbed more than 10% on Monday, reaching $193.68. The jump came after a weekend of social media excitement around Clawdbot.
Clawdbot is an open-source AI agent built on Anthropic’s Claude. It runs locally on users’ devices and executes tasks autonomously.
The stock has struggled over the past month according to InvestingPro data. But Monday’s surge showed renewed investor interest in the company’s edge computing potential.
Developers are already putting Cloudflare’s infrastructure to work with Clawdbot. They’re using Cloudflare Tunnels to securely host and access Clawdbot instances.
The company’s AI Gateway supports Anthropic’s Claude. This allows developers to route inference calls through Cloudflare’s network for caching and security.
Wolfe Research analyst Joshua Tilton maintained a Peerperform rating on the stock. He noted that hype around Clawdbot exploded across social media over the weekend.
Edge Computing Infrastructure Captures AI Traffic
As AI agents like Clawdbot scale up, they make more API calls and generate more internet traffic. This activity requires infrastructure for security and connectivity.
Cloudflare’s global edge network is positioned to capture that traffic. The company operates on a consumption-based model through its Workers platform.
CEO Matthew Prince addressed this opportunity during the company’s Q3 earnings call. He stated that approximately 80% of leading AI companies already rely on Cloudflare’s services.
“A huge percentage of the Internet sits behind us,” Prince said. “The agents of the future will inherently have to pass through our network and abide by its rules.”
Revenue Growth and Market Position
Increased agent activity could translate directly to revenue growth for Cloudflare. The company has demonstrated strong momentum with 28% revenue growth in the last twelve months.
Cloudflare currently has a market cap of nearly $68 billion. The stock trades above its Fair Value according to InvestingPro models.
TD Cowen maintained a Buy rating with a price target of $265. Citizens reiterated its Market Outperform rating with a $270 price target.
The company has made recent strategic acquisitions. Cloudflare acquired the Astro web framework team to enhance open-source development.
It also acquired Human Native to build an AI data marketplace. The marketplace aims to help content creators transform their work into AI-ready data.
Cloudflare and JD Cloud expanded their partnership to create a global platform for AI inference workloads. The partnership is expected to reduce latency.
Analysts expect Cloudflare to become profitable this year. The company’s earnings are due in 15 days.
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