Shares of edge-computing company Fastly (FSLY 2.55%) were hit hard on Tuesday, giving up sharp gains from yesterday.
The stock was likely down primarily because of a broader-market sell-off of tech stocks -- particularly growth tech stocks like Fastly.
Fastly stock was down 5.5% as of 3:30 p.m. EDT. Highlighting the broader-market bearishness weighing on the stock, the tech-heavy Nasdaq Composite was down about 0.7% as of this writing. Many growth stocks like Fastly, however, were down several percentage points or more.
Fastly stock has been hit hard this year, cooling off from big gains in 2020. But shares have started to rebound recently. The stock is up 27% over the past 30 days -- and that includes today's pullback. Nevertheless, some context is in order: Shares are still down 38% year to date.
Fastly's underlying business has continued to perform quite well in 2021. First-quarter revenue rose 35% year over year to $85 million as the company's edge-computing solutions help serve modern demands from developers for more customizability, reliability, and speed in the delivery and experience of their apps. And that was on top of some pretty tough comparisons in the year-ago quarter.
But Fastly stock's premium valuation after its 335% rise last year has come under the microscope, leading to lots of volatility in its share price recently.