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Why Fastly Stock Popped Today

By Evan Niu, CFA – Jun 30, 2020 at 1:01PM

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The content delivery specialist added new features to its platform and got a boost from Jim Cramer.

What happened

Shares of Fastly (FSLY 2.00%) have popped today, up by 8% as of noon EDT, after the company announced new observability features. The new additions will help give developers greater transparency after code is deployed.

So what

Fastly introduced numerous new functionalities, such as customizable logging, which provides real-time logs to developers and can also convey details around custom events depending on their business purposes. That data will help developers address potential problems that may arise. The edge cloud tech platform will also provide real-time and historical metrics, improving visibility and performance monitoring. Fastly is adding end-to-end request visibility, which can allow information to be transmitted to third-party systems.

Green stock chart going up

Image source: Getty Images.

"At Fastly, we think observability should go beyond logging and monitoring to also provide the context and data needed to answer crucial questions about serverless performance and, ultimately, an end user's experience," CTO Tyler McMullen said in a statement. "In addition to concerns about cold start times, observability has been a top apprehension with serverless among developers."

Now what

Separately, CNBC's Jim Cramer yesterday added Fastly to his "Cramer Covid-19 Index," a mock index that includes stocks that stand to potentially benefit from the pandemic's impact. The virus has accelerated certain trends, such as a shift to remote work, and boosted demand for many cloud services.

The prominent media personality said he wished he had added Fastly to the index back in April, as the stock has gained nearly 700% from March lows. Cramer also added VMware and Newmont Mining.

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 VMware. The Motley Fool has a disclosure policy.

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