Please ensure Javascript is enabled for purposes of website accessibility

Why Fastly Stock Jumped Today

By Evan Niu, CFA – Jun 17, 2020 at 1:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The content delivery network specialist achieved a new performance milestone and announced an acquisition.

What happened

Shares of Fastly (FSLY 2.00%) have jumped today, up by 10% as of 12:20 p.m. EDT, after the company announced a new performance milestone and an acquisition. The content delivery network (CDN) specialist also said it had expanded its capacity by 35% since December.

So what

Fastly's edge cloud platform has reached 100 terabits per second (Tbps) of connected edge capacity, a major performance milestone. The tech company is also acqui-hiring talent and intellectual property (IP) assets from Tesuto, a virtual network emulation platform.

Green stock chart going up

Image source: Getty Images.

"Reaching 100 terabits per second marks a significant milestone for Fastly as we continue to grow our global network," Fastly founder and Chief Architect Artur Bergman said in a statement. "Our acquisition of this great team and important technology from Tesuto builds on this momentum and is a vital step forward to continuously improve our network's reliability and capacity."

Now what

Tesuto's three co-founders -- Chris Bradley, Hossein Lotfi, and Jay Sakata -- will be joining Fastly. The trio have decades of combined experience in the CDN sector, including at EdgeCast Networks, which was acquired by Verizon in 2013.

Tesuto's technology emulates networks at scale and can create sandbox environments that simulate Fastly's entire network. With the acquisition, Fastly says it will be able to improve network design and facilitate faster deployments while increasing efficiency.

Sakata commented, "By adding Tesuto's network emulation technology to Fastly's modern network, deployments can be more frequent, efficient, and effective, allowing the network to adapt and scale faster than ever before."

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fastly. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Fastly, Inc. Stock Quote
Fastly, Inc.
FSLY
$9.16 (2.00%) $0.18

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.