Cloudflare Stock Rises Despite Outage as BofA Sees Limited Impact
Cloudflare shares climbed nearly 3% in early trading Thursday, recovering from a midweek dip following a service outage that temporarily locked users out of platforms including X and ChatGPT. Bank of America maintained its Buy rating, downplaying long-term consequences from the incident.
The cybersecurity firm attributed Tuesday's disruption to a latent bug triggered by routine configuration changes. "This was not an attack," emphasized CTO Dane Knecht, explaining how the glitch cascaded through network infrastructure tied to bot mitigation systems.
Market reaction remained measured as analysts distinguished between technical hiccups and fundamental weaknesses. The stock's resilience reflects confidence in Cloudflare's underlying technology stack despite operational growing pains.
