Fastly overtook Zoom as the stock market’s best performing work-from-home stock.
The cloud-computing company closed Monday up 222% from the market’s February 19 high, while Zoom has rallied 159% in the same period.
Fastly focuses on content delivery and internet security services. Some of its biggest customers include Slack and Spotify.
Investors aren’t the only ones benefiting from the run-up. The company announced a follow-on stock sale in mid-May of 6 million shares at $41.50 each. The stock has since leaped 76%.
Watch Fastly trade live here.
Fastly just became the stock market’s new work-from-home darling.
The cloud computing firm rallied 15% on Monday as investors turned back to stocks set to benefit from prolonged lockdowns. The leap brings Fastly’s total gains since February 19 to 222%, overtaking Zoom as the best performing work-from-home stock throughout the coronavirus pandemic. The lead is set to widen on Tuesday, with Fastly shares leaping as much as 7% in early trading.
While one of the most talked-about companies over the past several months, Zoom is up 159% since the market peak.
CNBC first reported on Fastly’s rally overtaking Zoom’s.
Fastly focuses on content delivery services and counts popular firms including Slack and Spotify as its customers. As quarantines drove more users to such online services, analysts eyed the cloud computing company as a top beneficiary from the telecommuting trend.
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Investors aren’t the only ones benefiting from Fastly’s run-up. The company sold another 6 million shares in mid-May for $41.50 each. By Monday’s close, the stock is up 76% from the follow-on offering price.
Fastly’s stock surge began on May 17, 2019, when investors flocking to its initial public offering drove shares 60% higher. The stock settled at around $20 through the end of last year and into 2020 until tearing higher through May.
The San Francisco-based firm also isn’t the only cloud-computing business rallying through the pandemic. Akamai shares are up 18% year-to-date and about 2% from February 19. Cloudflare is up 114% year-to-date and 108% higher from the mid-February market peak.
Fastly closed at $73.27 per share on Monday, up 275% year-to-date.
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Source:: Business Insider