Cloudflare shares surges by double digits in premarket trading after its AI agent, Clawdbot, raised investor expectations

Cloudflare shares rose by double digits in premarket trading on Tuesday following increased social media hype about the company’s AI agent. The AI agent attracted thousands of GitHub stars during the weekend as the company gears up for its earnings call on February 10.

Cloudflare shares rose by roughly 13% in early trading on Tuesday, extending a 9.6% gain registered on Monday. The stock’s upsurge came amid recent buzz around the company’s agentic AI tools. The company’s AI agent Clawdbot, an open-source AI agent built on Anthropic’s Claude platform, racked up thousands of “stars” on GitHub and went viral on social media over the weekend as it prepared for its fourth quarter earnings report on February 10. 

Cloudflare’s agentic AI attracts investors during premarket trading

The excitement centered on the company’s “agentic AI” software, developed to perform tasks independently and autonomously, beyond simply responding to conversational prompts. The innovation suggests Cloudflare is evolving its AI tools from demos to wider adoption and could spearhead the next wave of AI infrastructure.

Clawdbot developers leveraged Cloudflare’s low-latency infrastructure to securely connect to the agent and run it locally on their devices. The innovation is significant for Cloudflare since its edge network operates near end users, and its usage-based pricing tends to rise as traffic increases. 

The setup could pay off if AI agents ramp up web requests and data flow generation. Wolfe Research analyst Joshua Tilton said that Cloudflare is set to benefit more as agentic tools like Clawdbot make more API calls, hit more ⁠websites, and generate more traffic. 

During the company’s third-quarter earnings call in October last year, Cloudflare co-founder and CEO Matthew Prince said that the company projects that about 80% of leading AI firms already depend on its infrastructure. He explained that Cloudflare will establish protocols and business rules for what he termed “the agentic Internet of the future.” 

According to Google Finance, the company is up 21.14% over the last five days and has surged more than 7% over the last month. The stock is currently trading at $216.50, up from $189.49 yesterday.

DigitalOcean shares also rallied 8% on Tuesday, extending the 9% gain from Monday. Investors recognize the company’s potential link in hosting emerging AI agent technologies like Clawdbot, which have recently gone viral. The cloud infrastructure provider is reaping the benefits of Clawbot’s weekend buzz that has attracted tech-savvy investors on Monday and Tuesday.

Cloudflare partners with Coinbase to pioneer an AI crypto payment protocol

Cryptopolitan reported on September 24 last year that Cloudflare partnered with Coinbase to unveil a new initiative to create an AI-powered protocol for machines, websites, and services to pay each other directly across the Internet. The duo announced that the new AI-powered x402 protocol will enable digital agents, crawlers, and AI systems to make real-time automated payments using a shared format. Coinbase first proposed the x402 payment flow and has now onboarded CloudFlare to build the x402 Foundation and lead the project’s complete development.

The report also highlighted that the system will have many use cases, including an AI assistant that helps users search for information, visit many websites, and automatically pay small amounts to access individual articles. These articles would otherwise only be accessible on a monthly subscription plan from the publisher. The system will incorporate stablecoins to process payments faster. 

In October, Cloudflare also partnered with the world’s largest payments firms, including Visa and Mastercard, to pursue agentic e-commerce. Its partnership with Visa led to the development of the Trusted Agent Protocol, which enables merchants to engage with AI shopping agents securely and transparently. The company also announced it had acquired Astro Technology, a popular JavaScript web framework, as part of its expansion plan in building content-driven websites.

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