What Happened?
Shares of edge cloud platform Fastly (NYSE:FSLY) jumped 3.2% in the morning session after a wave of positive sentiment in the cloud sector as peer Snowflake (SNOW) posted strong quarterly results.
Snowflake, a cloud software provider, reported better-than-expected second-quarter results and offered an optimistic outlook, boosting its fiscal 2026 product revenue projection. The company's CEO cited the 'enormous opportunity' presented by artificial intelligence, fueling investor confidence across the industry. The broader market also provided a favorable backdrop for technology stocks, with major indexes ending the previous session in positive territory as investors anticipated key earnings reports.
After the initial pop the shares cooled down to $7.72, up 3% from previous close.
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What Is The Market Telling Us
Fastly’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.1% on the news that Federal Reserve Chair Jerome Powell opened the door to possible interest rate cuts. The broader market surged after Federal Reserve Chair Jerome Powell indicated that interest rate cuts could be on the horizon as the labor market shows signs of weakening. This news sparked a significant rally, with the Dow Jones Industrial Average, S&P 500, and the tech-heavy Nasdaq Composite all jumping by approximately 1.5% or more. The positive sentiment was widespread, as the prospect of lower interest rates is generally seen as beneficial for economic growth and corporate profitability. As a technology company, Fastly was carried higher by this strong market-wide momentum.
Fastly is down 16.1% since the beginning of the year, and at $7.72 per share, it is trading 31.9% below its 52-week high of $11.34 from December 2024. Investors who bought $1,000 worth of Fastly’s shares 5 years ago would now be looking at an investment worth $81.58.
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