Fastly Is Up 40% Since May. Can It Go Higher?
In this video I will be talking about Fastly's (NYSE: FSLY) recent internet outage, why the stock is actually up 40% since its last earnings report, and the effect of cloud gaming on Fastly.
On June 8, for about an hour, the internet broke. Websites including Amazon, Reddit, Spotify, eBay, Twitch, and Pinterest went offline due to a major outage at Fastly. Weirdly enough, the stock went up 12% the same day. When something bad happens to a public company, the stock price usually goes down, but not this time. The speculation is that the outage actually revealed a number of unknown clients. Seeing who these clients were might have assured investors that Fastly is actually relied on by a broad range of companies, including some of the biggest ones.
Another reason for the uptick might be that this issue got resolved in a little over an hour. This might have impressed investors and calmed down the above-mentioned companies. Obviously, should such issues arise more frequently, the market might act differently.
Source Fool.com
