Is Fastly Stock a Buy After Its Sell-Off Today?
Edge computing specialist Fastly (NYSE: FSLY) has been one of 2020's hottest stocks. Leading up to the company's second-quarter earnings release on Wednesday afternoon, shares had risen more than 440% year to date. With such a monstrous run-up, it's safe to say that investor expectations were sky high for the company going into its quarterly update.
In fact, judging by the market's reaction on Thursday to Fastly's stellar second-quarter results, expectations for the company had arguably become too high.
As of 11:20 a.m. EDT today, Fastly shares are down about 20% for the day, even though the company's second-quarter revenue blew past analyst estimates. Furthermore, shares are down more than 25% from highs earlier this week. Is this sell-off an overreaction? More importantly for investors, is this a good buying opportunity?
Source Fool.com
