Please ensure Javascript is enabled for purposes of website accessibility

Why Fastly Stock Rallied Today

By Chris Neiger - Mar 9, 2021 at 11:55AM

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

Investors are reacting to falling bond yields.

What happened

Shares of Fastly (FSLY -0.67%) popped today, likely as a result of falling bond yields. The broader tech sector has made significant moves based on bond yield prices lately.

The tech stock was up by 10.9% at 11:35 a.m. EST.

So what

Tech stocks have taken a hit recently as bond yields have risen. For example, Fastly's stock is still down about 12% so far this month, even with today's share price pop.

Red and green line graphs on a dark background.

Image source: Getty Images.

Investors have been concerned that rising bond yields will hurt high-growth companies like Fastly as some investors shift their focus away from companies that could ride out the pandemic. Bond yields have been rising over the past few weeks, so some investors have exited the tech sector. 

But yields fell to about 1.54% as of this writing, after reaching 1.6% yesterday. That slight drop was enough to convince some investors to get back into the tech sector. 

With the NASDAQ nearing correction territory yesterday, tech investors are likely very happy that the market is bouncing back today.

Now what 

Long-term Fastly investors don't need to worry much about the daily changes in bond yields. The yields essentially change nothing for Fastly's business, so it's probably best to ignore the daily share price swings and instead focus on the company's plans for long-term growth over the next few years.

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
$11.85 (-0.67%) $0.08

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

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.