Cloudflare Prices $2.175B Zero-Interest Convertible Notes Due 2031

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Cloudflare, Inc. (NYSE: NET) shares are up on Thursday as the company disclosed the pricing of $2.175 billion aggregate principal amount of 0% convertible senior notes due 2031. The company's announcement regarding the convertible senior notes is a significant financial maneuver that could enhance its capital structure and provide additional resources for growth initiatives.

This move reflects Cloudflare's ongoing strategy to leverage financial instruments to support its expansion and operational goals.

Initial purchasers also have an option to buy up to an additional $325 million of notes within 13 days of issuance.

The offering is expected to settle on August 13, 2026, generating approximately $2.14 billion in net proceeds, assuming the option is not exercised.

The senior unsecured notes will bear no regular interest, will not accrete, and will mature on August 15, 2031, unless redeemed, repurchased, or converted earlier.

Cloudflare cannot redeem the notes before August 20, 2029, except under a cleanup provision. Thereafter, the company can redeem the notes for cash if its Class A shares trade at least 130% of the applicable conversion price for the required period. It can also redeem all remaining notes if the outstanding amount falls below $200 million.

NET Technical Analysis: Key Levels And Momentum

The stock is currently trading at $313.12, which is 11.1% above its 20-day simple moving average (SMA) of $282.07. The moving average convergence divergence (MACD) is above its signal line, indicating that downside pressure is easing and suggesting improving momentum in the stock's price action.

  • Key Resistance: $324.73 - This level represents the recent 52-week high, which could act as a psychological barrier for traders.
  • Key Support: $285.29 - This level aligns with the 20-day exponential moving average (EMA), which often serves as a short-term support level.
NET Earnings Preview And Analyst Price Targets

Cloudflare is slated to provide its next financial update on October 29, 2026 (estimated).

  • EPS Estimate: 28 cents (Up from 27 cents YoY)
  • Revenue Estimate: $737.87 million (Up from $562.03 million YoY)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $341.68. Recent analyst moves include:

  • Citigroup: Buy (Raises Target to $400.00) (Aug. 10)
  • Susquehanna: Neutral (Raises Target to $300.00) (Aug. 10)
  • Scotiabank: Sector Outperform (Raises Target to $390.00) (Aug. 7)
How Cloudflare Ranks On Momentum And Market Performance

Below is the Benzinga Edge scorecard for Cloudflare, Inc. Class A common stock, par value $0.001 per share, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Bullish (Score: 94.7) - Stock is outperforming the broader market.
The Verdict: Cloudflare's Benzinga Edge signal reveals a strong momentum-driven story, reflecting its robust performance in the market. This positive momentum aligns with the company's strategic financial moves and growth potential.

NET Top ETF Holdings And Passive Flow Exposure

  • Amplify Cybersecurity ETF (NYSE: HACK): 5.23% Weight
  • Baillie Gifford Long Term Global Growth ETF (NASDAQ: BGGG): 5.68% Weight
  • Spear Alpha ETF (NASDAQ: SPRX): 9.87% Weight
Significance: Because NET carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

NET Stock Moves In Premarket Trading

NET Stock Price Activity: Cloudflare shares were up 0.53% at $313.12 during premarket trading on Thursday, according to Benzinga Pro data.