What happened
Shares of Fastly (FSLY 4.78%) were tumbling today on seemingly no company-related news. Some investors may be pulling back their enthusiasm for the tech stock after its share price popped yesterday.
Fastly's stock was down by 4.2% as of 12:10 p.m. ET.
So what
Fastly's share price has been pretty erratic over the past couple of days. Yesterday, its share price jumped by as much as 10%, as some investors flocked back to the tech stock following a massive share price drop in November.
Image source: Getty Images.
Today's subsequent drop likely means that investors aren't quite sure what to do with Fastly right now.
The company has had a difficult year after Fastly's business suffered an outage over the summer that took many high-profile websites offline. Those problems have long since been resolved but they came after the company also reported disappointing quarterly results earlier in the year.
Things got worse for the stock last month after the company reported its third-quarter results. Despite sales spiking 23% year over year to $87 million, which beat analysts' consensus estimate, Fastly's share price tumbled nearly 20% in November.
That huge sell-off came as investors fled many growth stocks during the month. And today's sell-off may be a continuation of that trend.
Now what
Fastly is still unprofitable right now and with the stock's continued volatility, investors may want to be cautious before considering buying Fastly's shares. The company replaced its CEO in 2020 and then its CFO in 2021, in addition to losing a key customer, TikTok, last year.
With so much uncertainty surrounding Fastly, investors will be better off leaving this tech stock alone right now.
