Folks, I know this is going to sound crazy... Lava lamps protect about 20% of the Internet's traffic.

A Huge Threat to AI Bots Isn't What You Would Expect By Ethan Goldman, junior analyst, Chaikin Analytics Folks, I know this is going to sound crazy... Lava lamps protect about 20% of the Internet's traffic. Those lamps are a novelty for us today. But they're essential to the daily operations of network-security firm Cloudflare (NET).  Without getting too technical, Cloudflare needs randomness for its online encryption technology. Computers need a source of random data. And since the moving "lava" in lava lamps doesn't take the same shape twice, it's a great source for generating randomness. So Cloudflare decided to use lava lamps as that source. The company set up around 100 of these funky lamps in its headquarters and pointed a camera at them. The camera takes pictures of the lamps. And Cloudflare uses the strings of random numbers generated by storing the digital images as a starting point for creating "encryption keys" for online security. Here's a picture of rows of lava lamps from Cloudflare's website... Believe it or not, the process works. You see, Cloudflare brands itself as the "world's first connectivity cloud." It provides a variety of products centered around secure Internet hosting. And as the concept with lava lamps shows, Cloudflare is no stranger to some unconventional strategies... Earlier this month, Cloudflare started a program to allow its users to charge AI "crawlers" for access to their data. These are automated bots that sift through the Internet to collect data to train AI. Before this, Cloudflare blocked bot traffic by default. Users had to "opt in" if they wanted to allow bot traffic. This is a bold move by Cloudflare... Content creators had faced the reality that anything they put on their websites would get scraped by a bot. And worst of all, they wouldn't receive credit or compensation. But the companies that train and produce AI models rely on this free data to keep the models growing. You can probably see where this becomes a divisive concept. I won't comment on that plan. But it isn't Cloudflare's first attempt to stop "bot crawling." Cloudflare has previously employed a tool called "AI Labyrinth" to stop unauthorized bots before. It would bog down bots that ignored "no crawl" directives. There's an interesting irony about this method, though... The "labyrinth" itself is AI-generated. Cloudflare seems to have adopted a "fight fire with fire" directive. It acknowledges that AI is here to stay. But the company thinks that AI shouldn't snatch up data from wherever it chooses. And the competing sentiments are playing out in Cloudflare's stock... Recommended Links: The Silent AI Crisis Threatening Half of U.S. Stocks A new crisis brewing in the AI market now threatens 65 million Americans and the entire U.S. economy. But if you move quickly, you could use this to triple your money (or more) in the weeks ahead. See how this could impact you and how to prepare. July 30 Could Ignite a Financial Nightmare He said "a major reckoning is coming" three months before the 2025 crash... His work pointed to the COVID-19 crash 25 days before stocks bottomed... And his firm spends $8 million a year in search of the biggest declines in the stock market. Now, one man has a chilling warning for the financial system on July 30. Click here to learn more. As the AI Landscape Evolves, Be Prepared for Volatility You see, Cloudflare's stock has been volatile this year. It started 2025 trading around $113 per share. Then it surged to about $177 per share around mid-February. Cloudflare proceeded to tumble 45% over roughly the next month and a half to about $97 per share. And today, NET shares sit around $198. You can see the roller-coaster ride in the chart below... You'll also notice that the Power Gauge has picked up on the volatility. Cloudflare's ratings have shifted between "bullish" and "neutral" territory amid the stock's big swings. Cloudflare has been on an uptrend in recent months. And you can see that it's trading above its long-term trend line. But Cloudflare is still in "neutral" territory in the Power Gauge. That means our system is still flashing caution for the stock. This new era of AI creates plenty of obvious winners and losers. There are also less obvious ones. Cloudflare might not be your first thought for an AI company. But it's using AI in a battle against other AI. This is a clear sign that the AI "war" is evolving. AI is a tool for some individuals and organizations... and a weapon for others. And those folks who can spot that – and weather the volatility that inevitably comes with powerful technology like this – will stand to profit. Again, Cloudflare is in "neutral" territory in the Power Gauge right now. So our system is saying there are better places to put money to work. But I'll be keeping a close eye on the Power Gauge for its next opportunity amid the evolving AI landscape. Good investing, Ethan Goldman Marc Chaikin: 'Ask Me Anything' In August, Marc Chaikin is doing something he has never done before. After a wild six months for stocks, Marc knows you may have many lingering questions. So, he'll be going on camera – NOT to discuss a specific opportunity, but instead to devote his time to answering YOUR most pressing questions. But to do that, we need to hear from YOU. If something is keeping you up at night (whether it worries or excites you), we want to hear from you. Marc will answer as many questions as possible during his "Ask Me Anything" event next month. Click here to submit your question(s). Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.43% 10 15 5 S&P 500 +0.42% 130 286 81 Nasdaq +0.24% 26 61 12 Small Caps +0.37% 637 1132 319 Bonds +0.63% Materials +1.18% 6 14 6 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Health Care +3.52% Materials +2.38% Industrials +2.33% Real Estate +2.27% Financial +1.71% Communication +1.35% Energy +1.33% Consumer Discretionary +1.22% Utilities +0.92% Consumer Staples +0.75% Information Technology +0.42% *  *  *  * Industry Focus Insurance Services 8 35 10 Over the past 6 months, the Insurance subsector (KIE) has underperformed the S&P 500 by -7.00%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #14 of 21 subsectors and has moved up 2 slots over the past week. Indicative Stocks AGO Assured Guaranty Ltd WTW Willis Towers Watson RYAN Ryan Specialty Holdi *  *  *  * Top Movers Gainers DECK +11.35% NEM +6.89% VRSN +6.67% CNC +6.09% EW +5.54% Losers CHTR -18.49% INTC -8.53% DOC -6.73% WST -5.59% CMCSA -4.78% *  *  *  * Earnings Report Earnings Surprises PSX Phillips 66 Q2 $2.38 Beat by $0.67 HCA HCA Healthcare, Inc. Q2 $6.84 Beat by $0.52 CHTR Charter Communications, Inc. Q2 $9.18 Missed by $-0.59 AON Aon plc Q2 $3.49 Beat by $0.08 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at indra21poetra@gmail.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2025 Chaikin Analytics, LLC. All rights reserved. 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