Please ensure Javascript is enabled for purposes of website accessibility

Why Fastly Stock Jumped Thursday, Soaring Past $100

By Daniel Sparks – Jul 9, 2020 at 4:54PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The tech stock's momentum is incredible.

What happened

Shares of edge computing specialist Fastly (FSLY 0.56%) jumped on Thursday, rising to a new all-time high above $100. The stock rose nearly 7% as of 3:10 EDT.

The stock's move higher was likely primarily fueled by momentum. The gain builds on the stock's big climb in recent months and bullishness in the market for growth stocks (like Fastly) overall.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Investors have shown an incredible appetite for Fastly stock since the company reported first-quarter results that blew away expectations. The company's second-quarter guidance was particularly impressive, with management guiding for revenue to jump 57% year over year -- a huge acceleration from 38% growth in Q1.

"As we mentioned earlier, we saw continued customer expansion on our platform, which was bolstered by increased internet traffic from social distancing measures in Q1," management said in Fastly's first-quarter update. "We expect this trend to continue into Q2 and future periods."

Now what

Fastly's second-quarter earnings release is fast approaching. When the infrastructure-as-a-service company reports its quarterly results on Aug. 5, investors will look for 57%-plus growth in Q2 and strong guidance for Q3.

The company will need to report nothing short of a stellar quarter in order to live up to the stock's 400% year-to-date gain.

Daniel Sparks owns shares of Fastly. The Motley Fool owns shares of and recommends Fastly. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Fastly, Inc. Stock Quote
Fastly, Inc.
FSLY
$8.98 (0.56%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
342%
 
S&P 500 Returns
107%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.