Why Cloudflare Stock Sank Today
Cloudflare (NYSE: NET) stock saw a significant sell-off in Wednesday's trading. The cybersecurity and web services company's share price closed out the daily session down 4.9% and had been off as much as 5.3% earlier in trading.
Cloudflare stock saw a valuation pullback today in conjunction with news that the Trump administration plans to implement new tariffs that would apply to foreign semiconductors. The company's share price also took a hit as a result of a new twist in a recently unfolding saga that has called the web services provider's anti-piracy protections into question.
President Trump announced yesterday that he'd be introducing a new 25% tariff on foreign-sourced semiconductors, automobiles, and pharmaceuticals. Chips are the only product category in that bundle that should have a meaningful impact on the tech company's business, but the tariffs could lead to higher costs for the tech specialist.
Source Fool.com
