Cloudflare (NET) Stock: Why AI Agents Are Driving This Rally

TLDR Cloudflare shares climbed over 10% Monday to $193.68 after weekend buzz around Clawdbot, an AI agent built on Anthropic’s Claude The company’s edge network infrastructure supports Clawdbot through Cloudflare Tunnels and AI Gateway services CEO Matthew Prince says 80% of leading AI companies already use Cloudflare’s services The consumption-based Workers platform could see revenue growth as AI agent activity increases Cloudflare has a $68 billion market cap and reported 28% revenue growth over the last twelve months Cloudflare shares jumped more than 10% on Monday, closing at $193.68. The rally followed a weekend of social media excitement around Clawdbot. Cloudflare, Inc., NET Clawdbot is an open-source AI agent built on Anthropic’s Claude platform. It operates autonomously on local devices. The stock had underperformed over the previous month. Monday’s surge marked a sharp reversal as investors focused on edge computing opportunities. Developers are using Cloudflare Tunnels to host and access Clawdbot instances securely. The company’s AI Gateway supports Claude, allowing developers to route calls through Cloudflare’s network. Wolfe Research kept its Peerperform rating on the stock. Analyst Joshua Tilton noted the social media hype around Clawdbot drove Monday’s trading activity. Infrastructure Play for AI Agents AI agents like Clawdbot generate internet traffic through API calls and website interactions. This activity needs infrastructure for security and low-latency connectivity. Cloudflare’s global edge network is positioned to handle this traffic. The company’s Workers platform operates on a consumption-based pricing model. CEO Matthew Prince highlighted the opportunity during Q3 earnings. He stated that roughly 80% of leading AI companies depend on Cloudflare’s services. “The agents of the future will inherently have to pass through our network and abide by its rules,” Prince said. Strong Growth and Strategic Moves Cloudflare posted 28% revenue growth o...