Shares of Fastly (NYSE:FSLY) rose today after an analyst at Piper Sandler reiterated a neutral rating for the company's stock, but said that the company's recent acquisition could also help increase revenue.
Fastly's share price rose by as much as 7.9% during morning trading but was up just 4.3% as of 11:43 a.m. EDT.
Piper Sandler analyst James Fish told investors that Fastly's stock still has a price target of $88 per share, but mentioned that he expects the company's full-year sales to be higher than he previously estimated, because of the company's purchase of Signal Sciences.
Fish wrote in an inventor research note that "Fastly is gaining footholds in larger accounts" and he estimates that Fastly's revenue in calendar year 2022 will be $544 million, which would be a significant jump from the company's 2019 revenue (its most recent full-year report) of $200 million.
Shares of Fastly have skyrocketed 560% year to date as internet usage has surged during the pandemic. Fastly's services help speed up its customers' websites and apps, and investors clearly believe the tech company will continue benefiting from the current trend in internet usage. Despite the company's share price spike this year, investors should also keep in mind that there could still be a lot of volatility in the market as the U.S. deals with a recession and pandemic.