Shares in cybersecurity firm Cloudflare (NET) jumped as high as 14% on Tuesday, extending a more than 9% gain from the previous day. The rally reflects optimism about Cloudflare’s technology and online buzz around Clawdbot, an open-source AI assistant built on Anthropic’s Claude model.
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Clawdbot, which was launched over the weekend and gained attention on social media, works on local devices to autonomously execute various tasks.
Wall Street Spots Cloudflare Upside amid Clawdbot Buzz
According to TD Cowen analyst Shaul Eyal, the prevailing belief on social media is that Cloudflare’s Tunnel service — which enables developers to operate tools such as AI agents running on their local services to the internet without the risk of cyberattack — could play a key role in deploying and securing Clawdbot agents at scale. In response to this, Eyal reaffirmed his Buy rating on NET and maintained his $265 price target, implying about 23% upside.
Chipping in, Wolfe Research analyst Joshua Tilton noted that Cloudflare’s global edge network — that is, a worldwide network of data centers that are placed closer to end users rather than in a few central centers — put the company in a good position to meet the scale Clawdbot could require. However, Tilton stuck to his Hold rating on Cloudflare’s shares and did not put forward any price target.
Meanwhile, RBC Capital analyst Matthew Hedberg also made a similar comment. Hedberg pointed to excitement surrounding Clawdbot as well as increased AI workloads on Anthropic’s Claude Code and Cowork. Both are AI assistants, but the former is tailored for coding while the latter is for general-purpose collaboration.
In addition, the analyst sees Cloudflare as one of the top long‑term beneficiaries of AI demand because it can earn from running AI models, offering its Workers serverless platform for AI agent deployment, and charging for AI data crawling.
Hedberg maintained his Buy rating on Cloudflare’s shares and put forward a $265 price target, implying about 40% upside from the NET closing price of $189.85 from on Monday.
Is Cloudflare a Buy or Sell?
On Wall Street, Cloudflare’s shares remain a Moderate Buy based on the consensus rating of 26 analysts. This breaks down to 15 Buys and 11 Holds issued over the past three months.
At $245.26, the average NET price target implies approximately 16% upside from the current trading levels.
