Cloudflare, Inc. (NYSE:NET) was downgraded to perform from outperform at Oppenheimer due to increased competition. According to the analysts, Amazon continues to disrupt the company's territory, with AWS announcing a new EC2 Edge which combines hybrid cloud and edge computing products: Outposts, Local Zones, Wavelength, and Telco.

The brokerage also believes the consensus estimates of EBITDA margin of 10.5%/13.3% for FY22/FY23 is overly optimistic. Oppenheimer believes that management plans to prioritize growth over operating margins given the competitive dynamics.