Cloudflare(NET) The Motley Fool·2025-02-19 21:34Core Insights - Cloudflare's stock experienced a significant decline, closing down 4.9% amid broader market concerns related to new tariffs and regulatory issues [1][2][3] Tariff Impact - President Trump announced a new 25% tariff on foreign-sourced semiconductors, which could lead to increased operational costs for Cloudflare, as the company relies on chips manufactured outside the U.S. [3][4] - The tariffs are set to potentially rise above 25% throughout the year, further impacting the company's expenses [4] Regulatory Concerns - Cloudflare is facing scrutiny over its anti-piracy protections, particularly after LaLiga blocked IP addresses associated with websites using Cloudflare's services due to piracy allegations [5][6] - The company has initiated legal action against LaLiga, raising concerns among investors about possible broader regulatory implications [6]