Cloudflare cuts 1,100 jobs, Susquehanna lifts price target to $200
Cloudflare plans to eliminate 1,100 positions to streamline operations and support its AI initiatives. Susquehanna analyst Shyam Patil raised his price target on Cloudflare from $190 to $200 and maintained a Neutral rating.
1. Major Job Reductions
Cloudflare announced elimination of 1,100 roles as part of a strategic realignment to support its AI-first agenda, aiming to reduce expenses and improve operational efficiency over coming quarters.
2. Susquehanna Price Target Revision
Analyst Shyam Patil increased his price target for Cloudflare by $10 to $200 while retaining a Neutral rating, citing the company’s AI-driven reset and potential margin expansion.
3. Stock Outlook and Implications
Investors are weighing the benefits of cost reductions against execution risks for AI-driven products, with the revised target reflecting tempered optimism about near-term revenue growth and profitability.