Why Fastly Stock Soared This Week
Shares of Fastly (NYSE: FSLY) popped as much as 21.4% this week, according to data from S&P Global Market Intelligence. The edge cloud computing platform put out a research report on the growth of cybersecurity worldwide and was buoyed by broad market movements. As of 12:37 p.m. ET on Friday, Dec. 2, the stock is up 20.9% this week.
On Nov. 30, Fastly put out a research report on cybersecurity strategies and how they are suffering from complexity. The report indicates that global companies are focused on upping their cybersecurity but are not spending on the category in a smart manner. According to the report, 73% of organizations worldwide are increasing their cybersecurity spending. However, only 61% of the cybersecurity tools are active or fully deployed.
Why is this good for Fastly? It isn't a cybersecurity company itself, but as an edge computing platform, many cybersecurity tools are built on top of its network. If IT departments are set to increase their spending on the category, this could mean more volume flowing through the Fastly network, which means more revenue for the business. Plus, if a lot of cybersecurity implementations are inefficient, companies may want to move to modern cloud-based approaches, which will help Fastly as an edge cloud provider.
Source Fool.com
