Mizuho analysts see Cloudflare's (NYSE:NET) guide down and cautious comments and Amazon's (NASDAQ:AMZN) AWS weak growth guidance as "cautionary harbingers" for some security and consumption software-based names today.
Cloudflare guided both Q2 and full-year revenue below consensus amid extended deal cycles and weak sales execution. Meanwhile, Amazon said they see April AWS revenue growth rates about 500 basis points lower than what they saw in Q1 as customers continue to evaluate ways to optimize their cloud spending in response to tough economic conditions.
Pointing to some specific stocks, analysts said they could see stocks like Snowflake (NYSE:SNOW), MongoDB (NASDAQ:MDB), Datadog Inc (NASDAQ:DDOG), Confluent (NASDAQ:CFLT), and parts of security like Zscaler (NASDAQ:ZS) and CrowdStrike (NASDAQ:CRWD) under pressure today.