Tuesday’s Headlines: Why Is Cloudflare Up 23%?
1. Cloudflare (NET) investors are on cloud nine this morning after shares in the data security company soared 23% off the back of its latest product launch: Cloudflare One. This new Zero Trust service offers protection to a company and its workers across a host of devices and networks both corporate and personal, with Cloudflare stating that this area of business represents a massive growth opportunity. In its own studies, the company cited that 82% of all polled organizations are already planning to make the change to Zero Trust security. Read the official release on Cloudflare’s blog here. Cloudflare was added to the MyWallSt shortlist in August 2020 and has risen 48% in that time. Check it out yourself here.
2. Shares in Disney (DIS) are up 5% pre-market this morning after the House of Mouse announced a major restructuring of its media and entertainment divisions last night, with Disney+ at the forefront of those plans. In order to further accelerate its direct-to-consumer strategy, the company will be centralizing its media businesses into a single organization that will be responsible for content distribution, ad sales, and Disney+. The move by Disney comes as the global coronavirus pandemic has crippled its theatrical business and ushered more customers toward its streaming options, with Disney services boasting more than 100 million paid subscribers as of August. If it works, use it! Read Disney’s official release here.
3. Cloud is king and nobody will be more aware of this than Twilio (TWLO) investors after the company expanded its impressive 2020 run with a 7.7% gain on Monday. The SAAS firm’s stock rose off of reports that it is acquiring customer data infrastructure start-up Segment for $3.2 billion, with analysts expecting the move to enhance Twilio’s already impressive capabilities in the cloud-based communications platform space. Twilio is not resting on its laurels as 'Segment' represents its third acquisition year-to-date, should it go through, while its stock has risen almost 220% in 2020 alone. Read more here.
The anticipation of the newest line of iPhones sent Apple (AAPL) shares soaring 6.35% on Monday, its largest single-day gain since July. Read about why here.