How Risky Is Fastly?
Cloud services provider Fastly's (NYSE: FSLY) stock price has increased by more than 650% from its March lows. Granted, the coronavirus pandemic boosted the edge cloud platform's first-quarter results, and the company will be releasing a promising product soon. But given the spectacular market reaction over the last few months, has the stock become too risky?
Fastly's core business looks simple. The company established a network of 72 data centers around the world to improve the performance of web services by hosting them physically closer to users. For instance, the shopping platform Shopify is one of Fastly's 1,837 customers, which means you might use Fastly's infrastructure, without knowing it, when you shop online.
But the reality is more complex as Fastly has built its own innovative solutions to provide more flexibility and control to its customers compared to traditional content delivery network (CDN) vendors. For instance, the company's customers can update their websites almost instantaneously, and they can rapidly identify and solve issues thanks to Fastly's granular near real-time logging capabilities.
Source Fool.com
