Why Cloudflare Stock Was Tanking on Tuesday
Tuesday was not a good day for tech stocks, and it was a particularly lousy day for content delivery network (CDN) operator Cloudflare (NYSE: NET). On the back of a broad sell-off in tech stocks on renewed inflation fears plus a big insider share sale, the company's stock price was down by nearly 7% in late-session trading.
Hardly for the first time this year, tech stocks as a group were taking a real pounding on Tuesday. Inflation fears trigger worries about higher interest rates. In turn, higher interest rates make "safe" assets such as bonds more attractive, and riskier plays less so. By their nature, tech stocks tend to be lumped into the "more risky" category.
But that wasn't the only dynamic pushing Cloudflare's stock earthward on the day. Streetinsider.com reported that CEO Matthew Prince filed paperwork to sell 471,456 shares of the company, citing information from Goldman Sachs -- one of the lead underwriters of Cloudflare's IPO.
Source Fool.com
