Fastly Stock Pops On Upbeat Analyst View For TikTok, Edge Computing

Fastly (FSLY) could win back data traffic from its one-time biggest customer TikTok while it lays the groundwork to win other business in edge computing, said an analyst who upgraded the stock. Fastly stock popped on Thursday.




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While the Trump administration threatened to ban the TikTok mobile app in the U.S. because of national security issues, the issue likely will go away.

“Positively, the TikTok issue has probably been priced in and traffic could come back with the new presidential administration,” Oppenheimer analyst Tim Horan said in a note to clients. He upgraded Fastly stock to outperform Thursday. “The biggest uncertainty is edge revenues.”

Fastly stock popped 6.8% to close at 104.13 on the stock market today. With the gain, though, Fastly stock is still well below a 117.89 entry point. Fastly stock could form a new base.

Fastly Stock: Push Into Edge Computing

Fastly’s network increases the speed of e-commerce transactions, business software downloads and video streaming to mobile devices. Customers include Shopify (SHOP).

In addition, the company has pushed into edge computing, which could boost Fastly stock. Some customers are in the early stages of putting computer processing and storage closer to where data is generated.

Horan said Fastly’s  “[email protected]” service seems to be gaining traction, but it’s unclear when material revenue will kick in.

“Consensus expects FSLY to deliver about $82 million in revenue for Q4, at the midpoint of guidance,” added Horan. “We are at the high end of guidance and consensus at $83.7 million. Channel checks suggest record Internet traffic in 4Q20, driven by e-commerce and video/game streaming, and security is also seeing very strong growth.”

See also  https://research.investors.com/stock-quotes/nyse-morgan-stanley-ms.htm

Fastly stock had consolidated after plunging in late October on worries over TikTok’s fate as well as other customers.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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View more information: https://www.investors.com/news/technology/fastly-stock-fsly-stock-oppenheimer-upgrade/

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