Market Reactions: The S&P 500 and Nasdaq fell due to post-earnings declines from Meta Platforms and Microsoft, despite both companies reporting better-than-expected results. Concerns over increased AI spending forecasts contributed to the drop, with Meta's shares down 10% and Microsoft's down 3%.
Honeywell Spin-off: Honeywell completed the spin-off of its advanced materials business, now called Solstice Advanced Materials, which began trading on Nasdaq under the ticker "SOLS." Shareholders received one Solstice share for every four Honeywell shares, and the new stock saw a price increase of nearly 6% on its debut.
Goldman Sachs Outlook: Goldman Sachs CEO David Solomon addressed concerns over the bank's stock drop post-earnings, emphasizing the strength of their investment banking and trading divisions. He expressed confidence in the U.S. economy and highlighted the significant investment in AI infrastructure as a growth driver.
Upcoming Earnings Reports: Club holdings Apple and Amazon are set to release their earnings, along with cybersecurity firm Cloudflare. Additionally, Club stock Linde will report results before the market opens on Friday.
Wall Street analysts forecast NET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NET is 253.24 USD with a low forecast of 131.00 USD and a high forecast of 318.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
Wall Street analysts forecast NET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NET is 253.24 USD with a low forecast of 131.00 USD and a high forecast of 318.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
10 Hold
0 Sell
Moderate Buy
Current: 173.300
Low
131.00
Averages
253.24
High
318.00
Current: 173.300
Low
131.00
Averages
253.24
High
318.00
Mizuho
Outperform
to
NULL
downgrade
$280 -> $255
2026-01-21
New
Reason
Mizuho
Price Target
$280 -> $255
AI Analysis
2026-01-21
New
downgrade
Outperform
to
NULL
Reason
Mizuho lowered the firm's price target on Cloudflare to $255 from $280 and keeps an Outperform rating on the shares. The firm adjusted targets in large-cap software as part of a Q4 earnings preview. Channel checks were solid overall, with public cloud data points were "generally good" and AI adoption "very strong," the analyst tells investors in a research note. However, Mizuho says some of its checks noted more moderate budget flush activity than usual. In addition, growing investor concerns about AI disruption :continue to decimate many software company multiples," the firm contends. It cites recent multiple compression for the target cuts.
Truist
Buy
downgrade
$275 -> $225
2026-01-20
New
Reason
Truist
Price Target
$275 -> $225
2026-01-20
New
downgrade
Buy
Reason
Truist lowered the firm's price target on Cloudflare to $225 from $275 and keeps a Buy rating on the shares as part of a broader research note previewing Q4 for Cybersecurity names. Companies in the firm's coverage should report a strong calendar Q4 and take a conservative posture for guidance, so that model setups could drive a continued beat-and-raise cadence for 2026, the analyst tells investors in a research note. Conversations with IT budget holders and software sellers indicate demand and the macro environment remains unchanged, with continued momentum in Security & AI initiatives, the firm added. Truist notes however that software equities have entered 2026 under pronounced pressure as investors rotate toward AI hardware, also pointing to concerns about AI-driven competitive disruption, slow monetization of AI features, higher-for-longer interest rates, and acute geopolitical shocks converge across the sector driving the IGV - iShares Expanded Tech-Software Sector ETF - down about 7% just in the first couple of weeks of trading.
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Citi
Buy
downgrade
$318 -> $260
2026-01-16
Reason
Citi
Price Target
$318 -> $260
2026-01-16
downgrade
Buy
Reason
Citi lowered the firm's price target on Cloudflare to $260 from $318 and keeps a Buy rating on the shares. Citi also added an "upside 90-day short-term view" on Cloudflare. The analyst sees an attractive entry point following the stock's recent selloff.
Piper Sandler
Neutral
downgrade
$249 -> $220
2026-01-05
Reason
Piper Sandler
Price Target
$249 -> $220
2026-01-05
downgrade
Neutral
Reason
Piper Sandler lowered the firm's price target on Cloudflare to $220 from $249 and keeps a Neutral rating on the shares. The firm is lowering multiple to 22-times sales. Piper still views it as best-in-class infrastructure and a decent setup for 2026 guide, but says that valuation at 1-time EV/Revenue/Growth already gives a lot of credit.
About NET
Cloudflare, Inc. is a connectivity cloud company. Its full suite of products consists of its website and application services to deliver security, performance, and reliability for an organization's websites, applications, and application programming interfaces (APIs); its secure access service edge (SASE) platform, which contains its suite of Zero Trust and network services solutions to help ensure traffic in and out of an organization’s internal network and devices is verified and authorized as well as to securely connect data centers, cloud services, and branch offices to an organization with its Connectivity Cloud; its developer-based solutions to build and deploy serverless applications with scale, performance, security and reliability, and its consumer offerings. Its website and application security product offerings include Web Application Firewall, Bot Management, Distributed Denial of Service Protection, API Security, SSL/TLS Encryption, Script Management, and Security Center.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
