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Why Cloudflare Stock Soared on Monday

By Daniel Sparks – Oct 12, 2020 at 12:20PM

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Investors love Cloudflare's new network-as-a-service solution.

What happened

Shares of cloud computing company Cloudflare (NET -6.10%) jumped on Monday, rising as much as 19.3%. As of 12:00 p.m. EDT, the stock was up about 15%.

The growth stock's gain follows Cloudflare's announcement of Cloudflare One, a network-as-a-service solution for cloud-based security, performance, and control through a single user interface.

A diagram showing three laptops connected to a cloud

Image source: Getty Images.

So what

Cloudflare One "replaces a patchwork of appliances and WAN technologies with a single network," the company said in a blog post on Monday morning. 

The new product notably integrates with major providers of identity management and device-security solutions. Some of the notable providers in the Cloudflare One partnership ecosystem include Okta, Alphabet's Google Workspace, Facebook, VMWare's Carbon Black, and more.

Now what

Cloudflare One is available as of today, the company said. But new features and products will be launching throughout the course of the week.

"It's going to be a busy week, but we're just getting started," said Cloudflare CEO Matthew Prince in a blog post.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Facebook, and Okta. The Motley Fool recommends Cloudflare, Inc. and VMware. The Motley Fool has a disclosure policy.

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