Cloudflare outage rocks stock amid sell-off

Core Insights - The recent AWS outage highlighted the internet's dependency on a few major cloud providers, with the duration of the outage exceeding expectations [1] - Cloudflare experienced a significant outage on November 18, affecting major platforms like X and ChatGPT, which led to a 2.83% drop in its stock value [3][4] Company Performance - Cloudflare's stock closed at $196.53 after the outage, marking a 22.4% decline from its peak closing price of $253.30 on October 31 [4] - The company reported Q3 earnings with total revenue of $562.0 million, a 31% year-over-year increase, and a gross profit of $415.7 million, reflecting a 74.0% gross margin [8] - The net loss for Q3 was $1.3 million, an improvement from a net loss of $15.3 million in Q3 2024, with net loss per share at $0.00 compared to $0.04 in the previous year [8] Market Context - The stock sell-off affecting Cloudflare is attributed to broader AI skepticism, impacting tech stocks with high valuations [6] - Cloudflare's acquisition of Replicate, an AI platform, aims to enhance its offerings by allowing developers to access AI models globally with ease [7]