What happened 

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.  

So what 

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.

Red and green line graphs on a dark background.

Image source: Getty Images.

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.  

Now what 

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.

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.