Cloudflare’s stock fell on Tuesday after the internet infrastructure company experienced a significant outage that disrupted access to several widely used websites, including X, ChatGPT, Grindr, League of Legends, Spotify, and multiple others.
The stock slipped 3.9% to $194.53 shortly after the opening bell, while the S&P 500 declined 1%.
Tuesday’s decline cuts into what has otherwise been a robust year for Cloudflare.
The company’s shares have surged 88% in 2025, far outpacing the 13% gain in the S&P 500 over the same period.
The outage, which began early Tuesday morning, affected many of Cloudflare’s enterprise customers and several high-profile consumer platforms.
According to the online tracker DownDetector—also impacted briefly—the disruptions were widespread and global in scale.
Cloudflare acknowledged the issue, saying it had identified the cause and was implementing a fix.
More than an hour later, the company said it was still working toward full resolution.
Fix implemented, but platform access issues persist
In an update posted to its status page around 9:57 a.m. ET, Cloudflare said it had implemented a fix but warned that some users might continue to face issues, particularly with access to its online dashboard.
“We are continuing to monitor for errors to ensure all services are back to normal,” the company said.
The outage disrupted services across a wide swath of the internet.
Shopify, Indeed, Anthropic’s Claude, Truth Social, and X were among the platforms affected. Some of NJ Transit’s digital services also went offline.
OpenAI, in a separate update, said that ChatGPT and its Sora video application were recovering after experiencing performance issues tied to a “third-party service provider.”
Cloudflare’s technology underpins a large portion of the modern internet, providing traffic management, security, and protection against DDoS attacks.
Its infrastructure supports an estimated 20% of the web, making outages of this scale particularly disruptive.
Industry faces a growing pattern of large-scale outages
The Cloudflare disruption is the latest in a series of major outages across the tech sector in recent months.
Less than a month ago, Amazon Web Services suffered a daylong disruption that took down multiple online services worldwide.
That was followed by a global outage of Microsoft’s Azure and 365 services, which caused widespread business and government interruptions.
The industry also continues to recall the sweeping outage in July 2024, when a faulty software upgrade by cybersecurity provider CrowdStrike halted flights, disrupted financial platforms, and forced hospitals to delay procedures.
With internet infrastructure providers under heightened scrutiny, Tuesday’s Cloudflare disruption underscores the vulnerability of core digital services — and the cascading effects when even a single provider falters.
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