Shares of Fastly (FSLY -10.51%) were rising this morning as tech investors continued to shift their investing strategy after the Centers for Disease Control and Prevention and the Food and Drug Administration announced yesterday that they were recommending that the U.S. pause use of the Johnson & Johnson coronavirus vaccine.
The tech stock climbed as much as 7% early today and had gained 4% as of 11:26 a.m. EDT.
While there wasn't any company-specific news driving Fastly's share price higher today, some tech stocks started climbing yesterday in response to the U.S. pausing use of Johnson & Johnson's coronavirus vaccine. Some investors think that having one vaccine fewer available could slow down how fast the U.S. economy reopens.
The FDA and CDC released a joint statement yesterday saying that "we are recommending a pause in the use of this vaccine out of an abundance of caution" after six individuals had reported cases of blood clots after receiving the Johnson & Johnson vaccine.
Tech investors have been trying to figure out how fast the U.S. economy will emerge from the pandemic, and this latest vaccine news was an indicator that the pace of recovery could be slower than initially thought.
This matters for Fastly because the company's technology helps speed up the delivery of website content (especially video), and the company's services have been in high demand as employees have been working from home and as people have been streaming more video content than ever before during lockdowns and social distancing.
There are still a lot of unknowns for how long it will take for the U.S. economy to reopen and how a pause on the distribution of the Johnson & Johnson vaccine will affect the pace of recovery. All of this means that Fastly investors can likely expect some more share price swings in the coming months.