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Why Fastly Stock Is Rising Again Today

By John Rosevear – Jun 18, 2020 at 2:56PM

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The content-delivery specialist is having a very good week.

What happened

Shares of Fastly (FSLY -0.59%) were up again on Thursday, a day after the content delivery network (CDN) specialist announced a significant performance milestone, as investors continued to buy up stocks positioned to benefit from a long-term shift from brick-and-mortar retail to e-commerce.

As of 2:30 p.m. EDT today, Fastly's shares were up about 4.9% from Wednesday's closing price.

So what

There was no significant news driving Fastly's share price higher on Thursday. But the company has had an eventful week. And its shares are probably getting a boost from intense investor interest in tech companies that stand to benefit from a post-coronavirus consumer shift toward online commerce.

Fastly said Wednesday that it had hit a significant performance milestone: Its edge cloud platform has reached 100 terabits per second of connected edge capacity and is now capable of handling more than 800 billion requests per day. 

Stock prices and an upward-trending arrow.

Image source: Getty Images.

Fastly also announced that it has acquired the team and intellectual property assets of Tesuto, a virtual network emulation platform. Tesuto's three co-founders, all with deep network experience, have agreed to join Fastly's team.

Now what

Fastly's shares also got a boost earlier this week, after e-commerce management provider Shopify (SHOP 0.67%) signed a deal with Walmart (WMT -2.50%), in which merchants using Shopify's platform will be able to list their offerings in a new section of Walmart's site. Although Fastly wasn't directly involved in the deal, some analysts (including The Motley Fool's Nicholas Rossolillo) think that Fastly could be a big beneficiary of the partnership. 

John Rosevear has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fastly and Shopify. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Fastly, Inc. Stock Quote
Fastly, Inc.
$8.39 (-0.59%) $0.05
Walmart Stock Quote
$130.06 (-2.50%) $-3.33
Shopify Inc. Stock Quote
Shopify Inc.
$28.76 (0.67%) $0.19

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