Fastly Is A Company Definitely Worth Keeping On Your Watchlist
A content delivery network (CDN) refers to group of servers scattered all over the world with the goal of providing fast delivery of Internet content. A CDN works behind the scene and ensures that Leofinance you are trying to load is just as quick if loaded from the US or South Korea loading Internet content including HTML pages, javascript files, stylesheets, images, and videos
The OG in the space is Akami. Akamai’s content delivery network (CDN) has more than 240,000 servers in over 130 countries and within more than 1,700 networks around the world. A CDN allows you and I surf the web, pay bills, watch videos faster…you get the picture. However, to put things in perspective, 85% of the world's Internet users are within a single "network hop" of an Akamai CDN server.
Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. It is a programmable platform designed for Web and application delivery.
Fastly's platform delivers site stability during traffic spikes while allowing companies to save on infrastructure costs. Fastly isn't the only game in town when it comes to content delivery networks, but it's doing right by its growing client base.
When Fastly hit the market in the springtime of 2019, it had posted 38% revenue growth in 2018. It followed that up with a 39% top-line burst in 2019, but its initial guidance for 2020 called for just 27% to 32% growth.
Everything changed after it posted 38% in revenue growth for the first quarter last month. It announced that it was experiencing customer expansion on its platform bolstered by a boom in traffic as a result of social distancing measures. It sees revenue accelerating to between 52% and 56% growth for the current quarter and a 40% to 45% increase for all of 2020.
Two months ago Facebook announced Facebook Shops. Facebook Shops which lets businesses operate online stores on Facebook and Instagram and in due time, Messenger and WhatsApp. According to Deutsche Bank analyst Lloyd Walmsley, the opportunity for Facebook Shop could amount to $30 billion in revenue. During that same time frame, Shopify announced their partnership with Facebook to help businesses create Facebook Shops.
Last month, Walmart announced their partnership Shopify, opening up Walmart’s Marketplace to Shopify’s small business sellers. Because of COVID-19, Walmart’s Marketplace business’s growth outpaced the overall business.
So as you can see, any additional partnerships that Shopify creates, indirectly benefits Fastly. However, Fastly’s wasd downgraded by Bank of America, Citigroup and Piper Sandler on the basis of overvaluation.
Next month Fastly announces their quarterly earnings. Since the last quarterly earnings, Shopify has made two big time deals with giants, Walmart and Facebook. I think a pull back to the weekly demand at $80 would be a great level to get long the stock.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance
