Cloudflare, Inc. (NET) experienced a significant 5.21% plummet in its stock price before Monday's trading session, after Baird analyst Shrenik Kothari downgraded the company from Outperform to Neutral. The downgrade reflects Baird's view that Cloudflare's valuation has become "relatively full" at current levels.

Analyst downgrades often trigger sell-offs as investors reevaluate their positions based on the revised ratings and price targets. In this case, Baird maintained its price target at $140, up from the previous $125, but the Neutral rating suggests a more cautious outlook on Cloudflare's near-term performance or valuation.

The sharp decline in Cloudflare's shares highlights the market's sensitivity to analyst ratings and their potential impact on a company's future prospects and investor sentiment.