Why Fastly Stock Dropped Today
What happened
Shares of Fastly (NYSE: FSLY) were down 12.5% as of 3:10 p.m. EDT Friday despite a lack of company-specific news. Today's drop appears to be coming in tandem with the broader market's decline -- with the S&P 500 down 0.9% and the tech-heavy Nasdaq down 1.6% as of this writing -- as traders weigh reports that the White House is considering restricting investments in Chinese equities amid the ongoing trade war.
Image source: Getty Images.
So what
It certainly doesn't help that Fastly, a California-based cloud-platform specialist, has been subject to more than its fair share of post-IPO volatility after going public in May. After soaring nearly 50% in August, for example, it has both plunged and popped more than 10% in a single day at least twice before in September alone without news to support the move.
Now what
I'd be remiss if I didn't reiterate my stance that investors shouldn't lose any sleep over these big swings. Such moves are par for the course for growth stocks like Fastly, which remains in the early innings of both its long-term growth story and its tenure as a publicly traded business.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fastly. The Motley Fool has a disclosure policy.
