Why Cloudflare Investors Are Dealing With Stormy Weather Today

Cloudflare's shares dropped 17% following its Q1 earnings report, despite beating earnings estimates with $0.16 per share on $378.6 million in sales. The decline was triggered by investor concerns over the company's future growth projections, which, although aligning with Wall Street expectations, fell short of higher unofficial expectations. Cloudflare anticipates a growth slowdown, projecting about 27% sales growth in 2024, significantly lower than its previous 41% growth rate since 2021. This has raised questions about whether the slowdown is due to short-term economic factors or deeper issues within the company.