Shares of Fastly (NYSE:FSLY) rose today as investors continued to process new information about rising coronavirus cases and increasing social restrictions across the U.S.
The company's stock rose by as much as 6.1% today and was up 3.4% as of 3:37 p.m. EST.
Coronavirus cases are increasing across the country, pushing states and local governments to increase their social distancing restrictions, implement mask mandates, and bring back limited lockdowns in some areas.
Some Fastly investors may see these new restrictions as a sign that some parts of the U.S. could go back to lockdowns over the winter. While this isn't good news, of course, this would increase the demand for online services and content, which could boost demand for Fastly's services.
News of two potential coronavirus vaccine candidates had spurred some investors to sell Fastly's stock this month. But even with those positive vaccine prospects, the rising number of new coronavirus cases is likely to curb some of the gains states had made in opening up businesses and allowing larger social gatherings.
Fastly stock has taken a hit over the past few months, but it's still up 289% year to date. Today's share price bump shows that some investors may continue to buy and sell this stock on some of the daily news being reported about the pandemic. But long-term investors should ignore most of the daily news that moves this stock and remember that the company has very good long-term prospects.