Shares of edge computing specialist Fastly (NYSE:FSLY) jumped sharply on Monday. As of 12:04 p.m. EDT, the stock was up about 11%.
The growth stock's gain comes as many other high-growth software stocks are gaining on Monday, even as the overall stock market pulls back. Further, shares of Fastly have seen a generally bullish trend ever since the company obliterated first-quarter analyst estimates last month. The stock's move on Monday builds on this momentum.
With uncertainty looming regarding COVID-19 and the economy, there seems to be a growing appetite among investors for high-quality, fast-growing tech stocks. Capturing the bullishness for tech stocks in the market, the tech-heavy Nasdaq is up 0.2% while the S&P 500 and Dow Industrial Jones Average fell about 0.4% and 0.7%, respectively, on Monday.
Fastly's first-quarter revenue grew 38% year over year to $63 million. Particularly notable, however, was management's guidance for second-quarter revenue to jump about 57% year over year. Business momentum has been fueled by continued customer expansion on its platform and increased internet traffic as consumers and workers shelter at home, management said.
Though lockdowns and work-from-home trends surrounding COVID-19 are undoubtedly giving the company a lift, management is bullish about periods beyond the current quarter as well.
"We expect this trend [of customer expansion on our platform and increased internet traffic] to continue into Q2 and future periods," management said in its first-quarter update. "Despite the current global economic uncertainty, we remain optimistic about the demand for our mission-critical services and the underlying growth of our business."