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Home / Business / Cloudflare shares fall 24% on the first day of trading

Cloudflare shares fall 24% on the first day of trading



Cloudflare shares rose by up to 24% on the first trading day on Friday. The company opened trading at $ 18, after pricing its IPO at $ 15 per share on Thursday.

Earlier this week, the company raised its IPO price range from $ 10 to $ 12 per share. The company offered more than 35 million shares for sale, raising $ 525 million.

In an interview after the debut, Cloudflare CEO Matthew Prince told CNBC's "Squawk Alley" that the company had decided to go public as soon as it was clear that its size and size justified the move. The company joins a fast-growing 201

9 IPO class that has seen many of the most-watched tech names make a difficult start so far. Uber, Lyft and Slack have all shrunk considerably since their debut.

"If a business reaches a certain size and size … you owe it to your employees and investors to run the business as a corporation. You might as well be a corporation," he said.

Cloudflare, which is listed on the New York Stock Exchange under the symbol "NET", provides companies with cloud-based network services that allow them to share and keep their content online.

In the company's original prospectus, Cloudflare reported a net loss of $ 36.8 million for the first half of 2019, with revenues of $ 129.2 million. Sales increased 48% and 13% year-on-year. As of the first half of 2019, 74,873 paying customers, including companies such as IBM, included the chat service Discord and Zendesk.

The company was in the limelight for its involvement in several controversies. Earlier this year, it hooked up with the controversial Internet forum 8chan after it was revealed that the site was used by the El Paso shooter to post an anti-immigrant and anti-government screed. In 2017, the company completed its service with the neo-Nazi website The Daily Stormer after the deadly "Unite the Right" rally in Charlottesville, Virginia. While there are platforms that are really designed to be terrible places, Price said in the CNBC interview. "And when that happens, I think it's the responsibility of technology companies to do more, and I think we're in a different position than Facebook or YouTube, but over time, we want to make sure the Internet is online is better place. "


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