NEW YORK, Jan 26, 2026, 15:05 EST — Regular session
- Cloudflare shares climbed roughly 11% in afternoon trading, beating most rivals in security and edge networking.
- Wolfe Research linked the surge to weekend chatter about “Clawdbot,” an open-source AI agent developed on Anthropic’s Claude platform
- Traders are focusing on the Fed this week, with Cloudflare’s Feb. 10 earnings set to be the next big checkpoint
Cloudflare (NYSE:NET) shares jumped over 11% on Monday, fueled by buzz around “Clawdbot,” an open-source AI agent, and fresh enthusiasm for “edge” infrastructure. The stock climbed 11.5% to $193.30 in afternoon trading, after moving between $172.84 and $193.97 earlier in the session.
This week is loaded with macro risks and major headlines, including megacap tech earnings and the Federal Reserve’s policy decision. Chris Larkin at E*Trade, part of Morgan Stanley, noted, “Megacap earnings should help shape sentiment around the AI trade,” as the Fed’s two-day meeting begins Tuesday. (Reuters)
Wolfe Research analyst Joshua Tilton connected Cloudflare’s recent surge to weekend chatter on social media about Clawdbot, an open-source AI agent built on Anthropic’s Claude. “Hype and excitement around Clawdbot exploded across social media,” Tilton noted, highlighting Cloudflare’s network as a likely winner if traffic driven by AI agents picks up. (Investing.com South Africa)
AI agents aren’t just about answering prompts; they perform actions like clicking through websites, managing workflows, and sending messages. Edge computing brings that processing closer to the user instead of relying on remote data centers, which helps slash delays and limits security risks.
Cloudflare Tunnel has drawn significant focus—it enables customers to link resources to Cloudflare without exposing them on a public IP address. According to Cloudflare’s own docs, it works via an outbound-only setup, relying on a lightweight connector called “cloudflared.” (Cloudflare Docs)
Tilton highlighted Cloudflare’s AI Gateway, designed to intercept model calls to providers like Anthropic, along with the broader developer platform. Investors have warmed to this concept, noting that since some platform components are usage-based, increased activity could drive higher revenue.
Cloudflare outperformed its peers in the sector. Akamai climbed roughly 3.8%, Fastly jumped about 7.3%, and Zscaler added around 2.2% during afternoon trading.
The rally highlighted just how volatile this sector remains. What begins as chatter among developers can quickly ignite momentum trades, especially with investors eager to spot the next “AI infrastructure” breakout.
But here’s the catch: just because open-source tools go viral doesn’t mean they’ll convert into enterprise contracts. If agent traffic remains minimal or gets locked inside closed ecosystems, Cloudflare’s paid services might see little benefit.
The broader “agentic” theme is gaining traction outside the stock market, too. On Monday, Anthropic rolled out an extension to its Model Context Protocol, enabling tools to run as interactive apps inside Claude. The company also revealed support for an Agentic AI Foundation, partnering with Cloudflare and other tech firms. (The Verge)
Cloudflare investors are focused on whether these developments translate into actual usage growth and clearer forward guidance — not just buzz on chat rooms. The next move probably hinges on that.
Cloudflare plans to release its fourth-quarter 2025 results after the U.S. market closes on Feb. 10, with a conference call set for 5 p.m. ET, the company announced. This report marks the next major event for NET following Monday’s strong rally. (Cloudflare)
