Shares of Fastly (FSLY 6.83%) are climbing on Tuesday, as investors grow increasingly excited about the cloud service provider's growth prospects.
As of 11:30 a.m. EDT, Fastly's stock was up more than 10%.
As a cloud-based content delivery network, Fastly is benefiting from the surge in internet traffic during the coronavirus pandemic. With so many people working and shopping from home, Fastly's business is booming.
Better still, Fastly's growth could accelerate in the quarters ahead. As my colleague Nicholas Rossolillo notes, Fastly could be a big winner from Shopify's new partnership with Walmart. The deal is designed to strengthen Walmart's fast-growing e-commerce operations, by allowing more than 1,000 of Shopify's best-performing merchants to sell their products on Walmart.com.
Fastly has wisely chosen to focus its efforts on the e-commerce industry, and it counts Shopify as one of its most important customers. Thus, Shopify's partnership with Walmart should also allow Fastly to benefit from the retail giant's surging e-commerce traffic -- Walmart's online retail sales soared 74% in the first quarter -- as well as Shopify's continued expansion.
By helping companies deliver their cloud-based content to consumers faster and more securely, Fastly is well-positioned to profit from several powerful trends, including the growth of e-commerce, remote work, and digital entertainment around the world. These are massive and rapidly expanding markets -- and Fastly has long runways for growth still ahead.