TLDR
- Cloudflare stock jumped over 10% on September 9, driven by Meta’s launch of its Muse personalized AI agent
- Muse is expected to dramatically increase agentic web traffic, directly benefiting Cloudflare’s edge infrastructure
- Cloudflare also launched an AI-powered security service integrating OpenAI’s GPT-5.6 Cyber model on September 3
- Q2 revenue came in at $696.1 million, up 35.9% year-over-year, with an adjusted EPS beat of $0.29
- Management raised full-year revenue and EPS guidance following the strong quarterly results
Cloudflare (NET) stock surged more than 10% on September 9, closing at $314.18. The move came as investors bet the company would be a key beneficiary of Meta Platforms’ newly unveiled Muse personalized AI agent.
Meta CEO Mark Zuckerberg announced Muse on September 8. The agent is designed to securely execute everyday tasks for consumers, running inside an isolated Linux environment with its own browser, CPU, memory, and storage.
Meta’s platforms serve 3.6 billion daily active users. Even a small fraction of those users adopting Muse would push web traffic volumes considerably higher, and Cloudflare sits right in the middle of that flow.
Cloudflare operates distributed infrastructure that routes, secures, and optimizes web traffic at the edge. More agentic traffic means more demand for exactly what Cloudflare sells.
The two companies already have history together. Back in 2025, Meta deployed its Llama open-source model on Cloudflare’s Workers AI platform for local AI inference.
Last quarter, Cloudflare CEO Matthew Prince said that for the first time in company history, over 50% of traffic on its network was non-human, agentic traffic. That number looks set to grow.
Cloudflare also recently launched Wallet, a product enabling secure commerce transactions between AI agents and merchants. Muse is expected to make use of this capability.
OpenAI Partnership Adds Another Catalyst
The Muse tailwind wasn’t the only thing working for Cloudflare this week. On September 3, the company launched “Vulnerability Discovery and Remediation,” a new feature inside its Managed Defense service.
The tool uses OpenAI’s GPT-5.6 Cyber model to automatically find, validate, and suggest fixes for software vulnerabilities. It combines codebase analysis with real-time traffic data from Cloudflare’s global network and can deploy custom firewall rules while drafting code patches for developers.
Strong Financials Back the Momentum
Cloudflare’s Q2 results gave investors additional confidence. Revenue hit $696.1 million, up 35.9% year-over-year. Adjusted EPS came in at $0.29, beating estimates. Billings grew 34.8% to $753.5 million.
GAAP operating margins were pressured by a one-time impairment charge, but the core business momentum was clear.
Management lifted full-year revenue and adjusted EPS guidance off the back of those results.
The stock is up 59.1% year to date and was trading near its 52-week high of $332.22 heading into the session.
At roughly 40 times sales and 114 times forward earnings, the valuation is not cheap. But Cloudflare has traded at a premium for most of its life as a public company.
Cloudflare has had 35 moves greater than 5% over the past year, but a 10% single-day move remains unusual even by its own standards.
At $314.18 per share, the stock is trading close to its 52-week high of $332.22.
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