Shares of edge computing company Fastly (NYSE:FSLY) surged on Monday, rising nearly 10% by the time the market closed.
The stock’s gain adds to a huge run-up in 2020 as investors continue to cheer the company’s recent strong first quarter and management’s decision to lift its outlook for the full year. On Monday specifically, shares may have benefited from the company’s spotlight on CNBC’s Mad Money last Friday, as well as an upbeat day in the market for growth stocks overall.
At a time when many companies were suspending their outlook for 2020 amid an uncertain environment, Fastly said in its May 6 first-quarter update (after it reported 38% year-over-year revenue growth) that it was boosting its view for the year. The company forecast 2020 revenue between $280 million and $290 million, up from a previous forecast between $255 million and $265 million.
“Despite the current global economic uncertainty, we remain confident in the demand for our mission-critical services and the continued growth of our business in 2020 and the years to come,” Fastly said in its first-quarter shareholder letter.
Many growth stocks were up several percentage points or more on Monday, significantly outperforming a 0.4% gain for the S&P 500. Fastly likely benefited from this broader market move.
In the interview with Jim Cramer on Mad Money last Friday afternoon, CEO Joshua Bixby explained that COVID-19 lockdowns have changed the fabric of the internet, forcing many companies to look to accelerate their digital transformations. As an edge computing platform built by developers for developers, the company is well positioned to help innovative companies transform digitally.