Why Cloudflare Stock Sank Today
Cloudflare’s (NET) stock experienced a 4.87% decline, closing at $160.59, amid concerns over new tariffs and legal challenges. The U.S. government’s recent imposition of a 25% tariff on foreign semiconductors, automobiles, and pharmaceuticals has raised operational cost concerns for Cloudflare, which relies on imported semiconductors for its infrastructure. Additionally, Cloudflare is entangled in a legal dispute with LaLiga, Spain’s premier soccer division, which has obtained a court order to block IP addresses associated with alleged piracy facilitated through Cloudflare’s services. These factors contribute to regulatory uncertainties and potential financial impacts on the company.
