Shares of Fastly (NYSE:FSLY) dropped by as much as 6% Thursday as some traders sold off tech investments following the sector's huge run-up over the past few months. By the close, though, the cloud computing services provider's stock had recovered almost all of those declines, and was down by just 0.17%, compared to the S&P 500, which slid by 0.84% on the day.
Tech stocks have experienced a few dips since the beginning of September, and Fastly's moves Thursday appear to be an extension of that pattern. There was no company-specific news that caused the shares to slide. Rather, some traders have been selling shares and cashing in on the massive gains that tech stocks have experienced over the past few months.
Fastly's shares are up by a staggering 312% since the beginning of the year. That's impressive on its own, but even more so when you consider that the S&P 500 has gained just 3.9% over the same period.
Investors should keep in mind that Fastly's share price moves Thursday didn't have anything to do with the company or its underlying business. As investors continue to look at taking some of their tech profits and applying them elsewhere, Fastly's stock could experience further price swings. Additionally, the ongoing coronavirus pandemic and the U.S. recession could add even more short-term unpredictability to stock prices.