The Daily Hype - Fastly (FSLY)

We are looking at Fastly (FSLY), today.

Why did Fastly stock jump today? 
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​Shares of Fastly (FSLY) were up more than 16% on Monday. The stock has grown more than 270% since the start of 2020 and just received new "buy" and "strong-buy" recommendations by financial analysts.

The company is benefiting from the transition of the world to digital lives. It enables faster delivery of content via what's known as the "edge cloud." According to the CEO, all content on the internet can benefit from the "edge cloud" and move away from legacy systems while being secured at the "edge." The company only has 300 customers, and its closest competitors have thousands of customers, and it is only starting to grow.

Despite being a recent IPO, and not generating profit or free cash flow, the momentum of the market is driving the stock further, and investors continue to stay optimistic about the future of Fastly.

The concerning aspect of the stock is trading at 25 times its sales. So, the decision is whether the growth rate can justify the stock's high price. This is canbe an addition to your watchlist as both a speculative and long-term hold. Make sure you have a look at the company's Stock Card, before making a decision.

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