What happened

Shares of Fastly (NYSE:FSLY) 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%.

So what

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.

A person in a business suit is holding an upwardly sloping digital chart.

Fastly's stock is surging as its sales soar. Image source: Getty Images.

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.

Now what 

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.