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Why Fastly Stock Edged Higher on Tuesday

By Daniel Sparks – Aug 24, 2021 at 12:23PM

Key Points

  • Growth stocks like Fastly are rising nicely on Tuesday.
  • The edge computing specialist is launching a key product on AWS.
  • A partnership with digital systems integrator Presidio could help Fastly's sales.

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There are two reasons for the move.

What happened

Shares of Fastly (FSLY -4.32%) rose as much as 2.6% on Tuesday. As of 11 a.m. EDT, the stock was up about 2.5%. The stock's gain outpaced the market's move higher.

The edge computing company's stock was likely up for two main reasons: an upbeat day in the market for many growth stocks and news that Fastly is making available its next-generation web application firewall in Amazon's (AMZN -1.40%) Amazon Web Services marketplace.

A diagram showing three laptops connecting to a cloud.

Image source: Getty Images.

So what

Highlighting a bullish day in the market for tech stocks like Fastly, the tech-heavy Nasdaq Composite was up 0.4% as of this writing, while the S&P 500 was up just 0.2%. Many growth stocks like Fastly were up 1% or more.

Meanwhile, Fastly announced on Tuesday that it was bringing its web application firewall to the AWS marketplace, adding an important demand source for the product.

"Fastly's addition to the AWS Marketplace allows businesses to quickly and efficiently access its WAF through a unified billing and procurement process," the company said in a press release about the product's availability on AWS, "providing superior and comprehensive protection to fast-evolving tech stacks."

Now what

Fastly said it also engaged with digital systems integrator Presidio, who will help resell Fastly's WAF as part of the AWS Marketplace Consulting Partner Private Offers.

"Fastly's listing allows customers to have more flexibility in their high-performance, security-first technology choices within AWS Marketplace," said AWS executive Mona Chadha.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Amazon and Fastly. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.

Stocks Mentioned

Fastly Stock Quote
Fastly
FSLY
$9.52 (-4.32%) $0.43
Amazon.com Stock Quote
Amazon.com
AMZN
$89.09 (-1.40%) $-1.26

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