What happened
Shares of Fastly (FSLY 0.07%) were gaining today on no company-specific news. The tech stock may be moving higher today after a positive investor note yesterday said that Fastly could benefit from content delivery opportunities from a service that Apple plans to launch in the fall.
The tech stock was up by 5% as of 12:34 p.m. EDT.
So what
Piper Sandler analyst James Fish said that Apple's new iCloud Private Relay, a security feature for iCloud subscriptions, could provide new revenue for content delivery network (CDN) companies, including Fastly and some of its competitors.
Image source: Getty Images.
Apple's new service is meant to provide added privacy for users by prohibiting networks and servers from monitoring a user's activity. Sander believes that iCloud Private Relay opportunities could provide annual revenue of between $40 million to $74 million for CDN companies over the next five years.
Investors may be jumping on this potentially good news as Fastly's share price has plummeted 45% over the past 12 months.
Now what
There's no guarantee that Fastly will benefit from this potential opportunity, of course, and investors may want to remain cautious about Fastly's stock right now.
The company suffered a major outage in the second quarter, which took many high-profile websites offline and led to the company losing key customers. That hurt the company's second-quarter financials and management has said that it will impact Fastly third-quarter results as well.
