Ark Invest Dumps Roblox and Loads Up on Cloudflare. Here’s Why

TLDR

• Cloudflare Q2 revenue hit $696.1M, up 35.9% year over year, beating estimates of $664.7M
• Adjusted EPS of $0.29 topped the $0.27 consensus forecast
• Full-year 2026 revenue guidance raised to $2.864B-$2.870B
• Multiple Wall Street analysts raised price targets, with Goldman Sachs lifting its target to $389
• ARK Invest bought 114,134 Cloudflare shares while selling over 1.5 million Roblox shares

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Cloudflare stock climbed to $313.40 on Friday, up $28.97 in midday trading, after the company reported strong second-quarter results and raised its full-year outlook.

Cloudflare, Inc., NET

Q2 revenue came in at $696.1 million, up 35.9% from the same period last year. That beat analyst expectations of $664.7 million by a comfortable margin.

Adjusted EPS of $0.29 also topped the $0.27 consensus. A year ago, the company posted $0.21 per share.

Wall Street Raises Price Targets

The earnings report triggered a wave of upward revisions from analysts.

Oppenheimer raised its target from $330 to $380, keeping an “outperform” rating. Goldman Sachs lifted its target from $266 to $389, citing agentic AI adoption and expansion of the Workers platform.

BTIG Research moved its target from $314 to $382. Morgan Stanley raised its target from $305 to $322. Mizuho went from $260 to $310.

Not all analysts are bullish. Cantor Fitzgerald stays at “neutral” with a $250 target, and three analysts still carry Sell ratings.

Management raised full-year 2026 revenue guidance to between $2.864 billion and $2.870 billion, up from the prior range. Third-quarter guidance of $736 million to $737 million also came in ahead of expectations.

Cloudflare said AI-agent traffic is growing on its network, with businesses using its infrastructure to route and secure AI applications. New products including the AEO Visibility Dashboard and Cloudflare OS were highlighted as potential growth drivers.

ARK Invest Makes Big Moves

While Cloudflare was climbing, ARK Invest was paying attention. ARK bought 114,134 Cloudflare shares through its ARKK ETF on August 7th, totaling $32.4 million.

At the same time, ARK sold 1,599,139 shares of Roblox through ARKK, worth $57.6 million. That continues a week-long pattern of ARK reducing its position in the gaming platform.

ARK also sold 101,539 shares of Snowflake for $32.3 million and bought 313,764 shares of Circle Internet Group for around $19.9 million.

On the crypto side, ARK picked up 59,668 shares of Coinbase for $8.7 million.

Insider Selling Worth Noting

CFO Thomas Seifert sold 55,000 shares on August 4th at $300.30 each, totaling $16.5 million. That cut his stake by 32.58%.

Co-founder Michelle Zatlyn sold 35,080 shares in May at $213.98. Over the past quarter, insiders sold a combined 749,532 shares worth roughly $183.9 million. All transactions were made under pre-arranged 10b5-1 plans.

Cloudflare’s 52-week range runs from $158.83 to $323.62. Friday’s close of $313.40 puts it near the top of that range.