Folks like the OP who believe CloudFlare is a good long-term buy but weren't paying attention before the earning's announcement. There's usually some subsegmen

Folks like the OP who believe CloudFlare is a good long-term buy but weren't paying attention before the earning's announcement. There's usually some subsegment of investors that believe that earnings are going to be really good, bid up the price beforehand, and figure they'll sell after earnings. If that group is smaller than the folks who see the earnings and figure it actually is a really good buy that they want to own, you get a stock pop after earnings. If the former group is larger than the latter, you get a stock drop. This cycle the former was bigger than the latter for CloudFlare. It's gone the other way both other cycles for CloudFlare and this cycle for other stocks. (Google and Disney, for example, got large after-hours pops after earnings.)