Cloudflare stock slides after outage despite strong growth and analyst ratings. Discover insights on NET's performance and future outlook.

Cloudflare, Inc. shares moved sharply lower in premarket trading on Tuesday after a major outage disrupted some of the world’s most widely used internet platforms. According to multiple reports, apps including X, ChatGPT, PayPal, and Uber experienced widespread 500 errors tied to Cloudflare’s infrastructure.

Cloudflare outage hit major platforms and tech stocks, with Nvidia, AMD and others falling as Nasdaq slid 1.2% and AI ETFs dropped over 2%.

Nvidia and Microsoft unveil a massive AI partnership with Anthropic, Home Depot reduces its full-year sales outlook, and Cloudflare reports widespread outages.

Major U.S. equities indexes extended their slide Tuesday afternoon, amid worries about an AI bubble. The Dow Jones Industrial Average and Nasdaq were down about 1%, while the S&P 500 fell 0.6%. Home Depot ( HD) shares fell 4% after the home-improvement retailer reported disappointing third-quarter earnings and cut its full-year profit outlook.

Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy and execute code without maintaining servers.

Cloudflare, Inc. (NYSE: NET) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer highlighted the company’s solid earnings and its potential to “get more profitable,” as he commented:

Cloudflare delivered strong Q3 FY25 results, with accelerated revenue growth and robust $100K+ customer momentum. Read why NET stock is a Hold.

Cloudflare stock slipped as the internet service company suffered several hours of global outage. Here’s why NET shares are worth buying on the pullback today.