Confluent (CFLT) Stock Plummets Nearly 30% On Muted Q3 Outlook

Shares of data-streaming company Confluent Inc (NASDAQ:CFLT) are plunging over 30% in morning trading on Thursday. Here’s what investors need to know.

What To Know: The dramatic sell-off was triggered by the company’s third-quarter guidance, which overshadowed an otherwise solid second-quarter performance.

Confluent reported strong results for the quarter ending June 30, 2025. Total revenue grew 20% year-over-year to $282.3 million, while subscription revenue increased by 21% to $271 million. The company also posted a non-GAAP net income per diluted share of 9 cents, a notable improvement from a loss of 4 cents in the prior year’s quarter.

However, investors were spooked by the company’s forward-looking forecast. For the third quarter, Confluent expects subscription revenue between $281-$282 million and non-GAAP earnings per share of $0.09-$0.10. This guidance was perceived as lackluster by the market, raising concerns about slowing growth momentum.

The weaker outlook prompted a flurry of analyst revisions. Wall Street firms including Baird, Oppenheimer, Raymond James, and Stifel all lowered their price targets on CFLT stock Thursday morning. Stifel also downgraded its rating from Buy to Hold with a new target of $21.

Price Action: According to data from Benzinga Pro, CFLT shares are trading lower by 32.46% to $17.83 Thursday morning. The stock has a 52-week high of $37.90 and a 52-week low of $17.51.

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How To Buy CFLT Stock

By now you're likely curious about how to participate in the market for Confluent – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Confluent, which is trading at $17.84 as of publishing time, $100 would buy you 5.61 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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