What happened
Shares of Fastly (NYSE: FSLY) leapt 15.7% on Monday, as investors eagerly await its upcoming earnings results.
So what
Fastly is scheduled to report earnings after the market close on Wednesday, Aug. 5. Analysts expect the company to deliver revenue growth of more than 58%. Fastly is expected to benefit from surging internet traffic during the novel coronavirus pandemic. Several of its largest customers, such as rapidly expanding e-commerce platform Shopify, have reported impressive growth in recent weeks, and investors hope that growth will also be reflected in Fastly's results.
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Fastly's stock price likely also benefited from reports that President Trump will allow Microsoft to acquire popular social media platform TikTok. TikTok is another one of Fastly's most important customers, and investors are likely breathing a sigh of relief that the site will not be banned in the U.S. as previously feared.
Now what
Few businesses are better positioned to benefit from the internet's near- and long-term growth than Fastly -- and we'll soon get to see just how well the company is performing. If Fastly can exceed the market's now heightened expectations, many more gains could lie ahead for investors.
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fastly, Microsoft, and Shopify and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. 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.
