Cloudflare’s slowing growth disappoints investors betting on AI boost

Cloudflare shares tumbled more than 15% in premarket trading on Friday, after its quarterly revenue forecast disappointed investors who had bet the stock would be a major beneficiary in the race to adopt artificial intelligence.

The networking and cybersecurity services provider will also lay off about 20% of staff due to ‌greater use of ⁠AI ⁠tools, a move that Jefferies said could hurt near-term growth.