Why Cloudflare Tanked 28% in April
Shares of web infrastructure company Cloudflare (NYSE: NET) fell 28% in April, according to data provided by S&P Global Market Intelligence. It was a tough month for stocks in general as the S&P 500 tumbled 8.8%, but high-growth software stocks were especially under pressure. In response to high rates of inflation, the Federal Reserve has indicated it will aggressively hike interest rates this year to try and cool the economy off. Higher rates lower the present value of risk assets like stocks.
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As of this writing, Cloudflare is down over 60% from all-time highs last reached in the autumn of 2021 -- although the stock is on an epic 400% run since its initial public offering (IPO) in 2019.
Source Fool.com
