Fastly's (NYSE:FSLY) stock moved higher today as investors searched for companies that have the potential to grow during an economic downturn. The company's stock was up by as much as 8.7% in afternoon trading.
As of 2:46 p.m. EDT, Fastly's stock had risen 4.7%.
Fastly's shares rose once again today as investors viewed the growing company as a good long-term bet during the pandemic. Fastly is an edge cloud-computing and content-delivery network company that helps other companies speed up their websites, apps, and online services.
As the economic effects of the pandemic have begun to settle in, investors have been drawn to Fastly's stock as a way to benefit from increased internet usage by U.S. users.
Fastly's shares have surged 248% since the company reported its first-quarter results at the beginning of May. Sales grew 38% year over year, and the company narrowed its non-generally accepted accounting principles (GAAP) operating losses compared to the year-ago quarter.
With the U.S. in a recession and no current end in sight for the pandemic, investors are likely looking for any positive news they can find. And when it comes to Fastly, investors have been happy to see that the company's management raised its full-year revenue guidance to a range of between $280 million to $290 million, up from the previous range of between $255 million to $265 million. All of which means it's likely investors could be drawn to this growth company over the long haul.