Fastly Inc. (NYSE:FSLY) a content delivery network that acts as an internet intermediary, has emerged as the best-performing tech stock outpacing Zoom Video Communications Inc, (NASDAQ:ZM), a company that has been often in the limelight in the work-from-home era.
What Happened: Fastly made its debut in May 2019 and opened for trade at $21.50.
Last week, the stock clocked gains of 36%. On Monday, Fastly shares rose by nearly 15%.
Since the recent market highs on Feb 19, Fastly has zoomed past Zoom as shares surged 222%. In the same period, Zoom rose 159%.
Why It Matters: As people take to working from home, the underlying technology of Fastly is being used by companies buoyed by the trend.
D.A. Davidson analyst Rishi Jaluria recommends the stock due to its “really strong fundamentals” and “everything executing well at the same time."
I"t feels that [work from home] will continue longer than people expected and that benefits certain names that are all up nicely today," Jaluria said.
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In its first-quarter earnings, Fastly said its revenue increased 38% and revised its guidance upwards from $265 million to $290 million.
On May 26, Fastly announced a follow-on stock offering at $41.50 a share, priced at a discount of 43% below Monday’s stock price.
Price Action: Fastly shares traded 4.41% higher to $76.50 in Monday's after-hours session.