pakistan
Cloudflare’s slowing growth disappoints investors betting on AI boost
Key takeaways
- The networking and cybersecurity services provider will also lay off about 20% of staff due to greater use of AI tools, a move that Jefferies said could hurt near-term growth.
- Following a 43% rally since its last quarterly results in February, analysts said expectations were high for the company, only for its forecast to flag slower growth as rising AI infrastructure costs squeeze margins.
- Cloudflare said it expects revenue to increase up to about 30% in the second quarter, slower than the 33.5% growth recorded in the first quarter.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize Cloudflare shares tumbled more than 15% in premarket trading on Friday, after its quarterly revenue forecast disappointed investors who had bet the stock would be a major beneficiary in the race to adopt artificial intelligence.
The networking and cybersecurity services provider will also lay off about 20% of staff due to greater use of AI tools, a move that Jefferies said could hurt near-term growth.
Following a 43% rally since its last quarterly results in February, analysts said expectations were high for the company, only for its forecast to flag slower growth as rising AI infrastructure costs squeeze margins.
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