Cloudflare stock pops 27% in first day of trading

Matthew Prince of CloudFlare.Getty ImagesShares of Cloudflare skyrocketed more than 27% in its first day of trading on the public market on Friday. The company opened trading at $18 after it priced its IPO at $15 a share on Thursday.Earlier this week, the company raised its IPO price range to between $12 and $14 per share, up from its previous range of $10 to $12 per share. The company offered more than 35 million shares for sale, raising $525 million in the process.Cloudflare provides cloud-based network services to enterprises, helping them distribute their content and keep it available online. In the company’s initial prospectus, Cloudflare reported a $36.8 million net loss on $129.2 million in revenue for the first half of 2019, with revenues up 48% and losses up 13% from the same period a year ago. It counted 74,873 paying customers as of the first half of 2019, including companies like IBM, the chat service Discord and Zendesk.The company has been in the spotlight for its involvement in several controversies. Earlier this year, it moved to pull the plug on controversial internet forum 8chan, after it was discovered that the site was used by the El Paso shooter to post an anti-immigrant and anti-government screen. In 2017, the company ended service with neo-Nazi website The Daily Stormer following the deadly « Unite the Right » rally in Charlottesville, Virginia.The web security company will trade New York Stock Exchange under the symbol « NET. » Goldman Sachs, Morgan Stanley and JP Morgan led Cloudflare’s IPO.

Source: CNBC

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