Markets

Why Fastly Stock Jumped Monday

What happened

Shares of Fastly (NYSE: FSLY), a provider of an edge computing platform, soared on Monday, rising 9% by 3:45 p.m. EDT.

The stock's move higher was likely driven by overall bullishness in the market on Monday for growth stocks like Fastly. In addition, some investors may think a pullback in the tech company's stock last week went too far, creating a buying opportunity.

A chart showing stock prices moving higher

Image source: Getty Images.

So what

Investors have been buying up Fastly shares in droves ever since the company's blowout first-quarter results and management's outlook for accelerated growth in Q2. But shares fell last week, along with many growth stocks, taking a breather from a huge run-up. The stock still trades 18% below an all-time high achieved earlier this month, perhaps explaining why some investors appear to be opportunistic by buying the stock on Monday.

Now what

Investors will get an opportunity to check in on Fastly's performance early next month. The tech company is slated to report its second-quarter results after market close on Aug. 5. Management guided for revenue during the period to be between $70 million and $72 million, up from $46 million in the year-ago period. 

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Daniel Sparks owns shares of Fastly. The Motley Fool owns shares of and recommends Fastly. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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