By Kuldip K. Ambastha
During this past trading week, Fastly, Inc. (FSLY) had a -27.2% return on Thursday, October 15, 2020. Fastly is a technology company in the content delivery network, cloud provider, and edge computing arenas. After Fastly issued a 3Q2020 revenue warning which was inconsistent with the strong growth story of the company in the recent past, the stock price dropped sharply. Some of the weakness is due to geopolitical (U.S. / China) tensions related to Fastly’s exposure to TikTok’s ultimate owner ByteDance.
However, other, undisclosed customers may also account for decreased revenues to Fastly in 3Q2020. Little information is currently known about who the other customers are in relation to Fastly. It may be the case that this growth-oriented, tech stock will be under continued pressure going forward until the revenue outlook improves. Fastly has revenues and sales but no earnings, and its stock is still trading at high valuations even with the -27.2% return of Thursday, October 15, 2020.
Keywords – Fastly, Inc., Fastly, FSLY, technology, tech, growth, customers, TikTok, ByteDance, USA, U.S., China, valuations, 3Q2020, revenues, sales, earnings.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in FSLY.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2020 – Ambastha Financial LLC.