Cloudflare (NET) has announced it will block AI scrapers by default, aiming to protect online content. This decision has sparked debates regarding potential implications for AI companies that rely on web crawling and has garnered mixed reactions on social media. Following this policy shift, Cloudflare’s stock dipped over 5% in a recent trading session, raising concerns about its finances, including ongoing net losses and potential dilution risks. Optimism persists about its long-term prospects in the AI and cybersecurity sectors.
Insider and Congressional Trading
In the past six months, members of Congress have traded Cloudflare stock four times, with one purchase and three sales. Additionally, Cloudflare insiders conducted 276 trades, all of which were sales, totaling over $126 million from sales by CEO Matthew Prince and other executives.
Institutional Investor Activity
Recently, 495 institutional investors added shares, while 306 reduced their positions in Cloudflare. Notably, JPMorgan Chase increased its holdings by over 1.3 million shares, while Baillie Gifford reduced theirs by approximately 4.5 million shares. Over the past year, Cloudflare has also received over $1 million in government contract award payments.
