May. 8 at 9:50 AM
I have been an investor of
$NET since their IPO, and I’ll say that the latest ER results and accompanied reduction in workforce is a warning sign that cloudflare is not doing well in the AI boom.
The ER should have been a blockbuster ER, instead it was similar to previous results. That in self might not have been problematic. But; paired with how other companies have performed (
$DDOG for example), the visible investment
$NET product/engineering team has made in the AI ecosystem, and the announcement of job losses - to me these are all signals of a company that hasn’t been able to capitalize on the market growth and is at risk of faltering.
Competition is incredible fierce, but
$NET was in a position to dominate, especially given how cheap code has become, more code needs to be deployed. Yet
$NET has not been able to translate this into revenue and seems to be doing business as they were pre-AI.
@eastdakota I hope you have a plan.
