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Why Fastly Stock Popped Again Today

By Chris Neiger - Jun 24, 2021 at 12:09PM

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Investors appear to be changing their minds about this rising tech star.

What happened

Shares of Fastly (FSLY -0.41%) were climbing this morning on no company-specific news. But it's likely that investors are continuing the bullish outlook on the stock that they've had over the past few days. 

The tech stock was up by 5.9% at 11:10 a.m. EDT. 

So what

Fastly, a content delivery network (CDN) company that helps efficiently and quickly deliver website content to internet users, saw its share price jump as much as 4% yesterday before pulling back a bit near the end of the day.

Red and green line graphs on a black background.

Image source: Getty Images.

Fastly became a tech stock darling in 2020 as lockdowns and distancing forced many people to spend most of their time at home and online. But once vaccines became available and the U.S. economy started opening back up, investors dumped Fastly, along with many other tech stocks. The result has been a nearly 20% drop in Fastly's share price over the past 12 months.  

But investors appear to be warming back up to Fastly, and the company's stock has spiked 35% over the past month. 

Now what 

Investors may be returning to Fastly after the company made headlines earlier this month when major websites across the globe went down. The problem stemmed from some code on Fastly's CDN service, but it was quickly fixed, and the hiccup may have actually shown investors just how important the company is to keeping the broader internet up and running.

That event, mixed with a generally positive sentiment toward tech stocks again, may be convincing some investors that Fastly is a good buy right now. 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fastly. The Motley Fool has a disclosure policy.

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Fastly, Inc. Stock Quote
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