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Stocks of cloud-based software services provider Fastly Inc (FSLY:US, NYSE:FSLY) bounced back by as much as seven per cent (10:20AM EST) on Tuesday, June 8, after dipping earlier in the day.
The stock had plunged by nearly two per cent in the premarket trading hours after the IT firm faced an outage issue that briefly interrupted its clients’ real-time content websites.
Fastly is said to have resolved the issue within 46 minutes and has denied any system hack rumors.
The tech firm tweeted that it has recognized and resolved the service configuration that caused the outage across its global cloud-based system-connected platforms.
From Netflix (NFLX:US, NASDAQ:NFLX) to Amazon (AMZN:US, NASDAQ:AMZN), a wide range of cloud computing networks depend on Fastly’s IT services. Let us glance at the software firm’s stock performance and financials.
Fastly Inc (FSLY:US, NYSE:FSLY)
The US$ 5.65-billion market cap information technology firm manages a content delivery network (CDN) that offers enterprises real-time online content solutions. Its previous stock price was US$ 50.7 apiece on Monday.
Fastly stock was trading almost 41 per cent down year-to-date (YTD) at the time of writing this on Tuesday. However, the stock has initiated its uptrend movement to come out of the bearish zone and gained almost 24 per cent in the last one month.
Its one-year return is nine per cent and its 30-day average volume is 5.5 million shares. Fastly stock is down by almost 37 per cent against its 200-day simple moving average, which shows a long-term downtrend.
Fastly's One-Year Price Performance Against Moving Average Multiple and Volume. (Source: Refinitiv)
On Monday, the IT stock trajectory managed to breach its moving average multiple, representing an approaching bull-market.
In the first quarter of 2021, Fastly reported a top line surge of 35 per cent year-over-year (YoY) with total revenue of around US$ 85 million. However, its operating loss was US$ 50 million in Q1 2021, worsened against a loss of US$ 12 million a year ago.
The company spent US$ 29 million on research and development (R&D) in Q1 2021, representing 34 per cent of revenue. The company might allot more capital to the R&D segment following the above mentioned configuration glitches to develop more advanced cloud computing solutions.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
