Cloudflare reported earnings after the close yesterday
IT leader Cloudflare Inc (NYSE:NET) is moving 3.2% higher to trade at $76.74 this morning, after the company posted better-than-expected second-quarter results and raised its full-year outlook. The equity now expects earnings between 70 and 71 cents per share, with a 2024 profit of 61 cents per share.
On the charts, while the shares have struggled over the past few months, they remain 18% higher year over year, with support below at the 320-day moving average. Today, Cloudflare stock is on track for its best daily percentage pop since February.
Analysts are leaning bearish, with 19 of the 29 in coverage sporting a "hold" or worse rating, and 10 a "buy" or "better." Short interest has also been on the rise, up 9.4% over the past two reporting periods and now accounting for nearly 3% of the stock's total available float.
Despite its recent underperformance, call traders have been circling. This is per the stock's 50-day call/put volume ratio of 2.05 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 95th annual percentile.
Despite still being early in the session, options have been red-hot, with 5,967 calls and 3,504 puts crossing the tape so far -- double the intraday average volume. Most popular are the weekly 8/2 80- and 86-strike calls, expiring today.