Cloudflare shares fell 3.2% in the afternoon session after the company disclosed a cross-tenant data-isolation vulnerability in its Containers and Sandboxes products that could have allowed a customer to recover residual disk data previously used by other customers' containers on the same host. Cloudflare said it fixed the issue and found no evidence of malicious exploitation or compromised customer data, though the disclosure raised concerns about shared-infrastructure isolation. The drop also came amid a broader pullback in cybersecurity stocks as investors reassessed elevated valuation multiples following the sector's AI-driven rally, with Cloudflare itself up roughly 29% over the past month. After the initial decline the shares recovered some ground to $348.63, down 2.6% from the previous close. Cloudflare is up 77.8% since the start of the year and trades near its 52-week high of $358.82.
Cloudflare IncCloudflare disclosed a cross-tenant data-isolation vulnerability in its Containers and Sandboxes products, raising concerns about shared-infrastructure isolation.
