# Cloudflare shares fell sharply Friday as investors reacted to valuation concerns.

*genai · news · 2026-05-08 · Benzinga*

## Key points

- Cloudflare beat Q1 revenue and earnings estimates but shares fell over 22% due to valuation concerns.
- Goldman Sachs raised Cloudflare's price target from $250 to $266, citing product and network growth catalysts.
- AI inference demand and migration from hardware firewalls are highlighted as new strategic growth drivers for Cloudflare.
- Benchmarking indicates Cloudflare’s operational efficiency could surpass peers with a potential 20% workforce reduction.

**Companies:** Cloudflare, Inc.

[Read the full story on Benzinga](https://www.benzinga.com/analyst-stock-ratings/analyst-color/26/05/52424485/whats-going-on-with-cloudflare-stock-today-2)

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