Fastly Grabs Work-from-Home Honors from Zoom

Zoom (NASDAQ:ZM) may be the technology story of the pandemic. But it’s no longer the best-performing tech stock of the work-from-home era.

That distinction now belongs to Fastly (NYSE:FSLY), which went public a month after Zoom last year. Fastly shares climbed 15% on Monday to $73.27, following last week’s 36% surge. They’re now up 222% since the market’s peak on Feb. 19, outperforming Zoom, which is up 159% over that stretch. Fastly shares began life Tuesday up $3.19, or 4.2%, to $76.34.

Fastly’s technology helps consumers more rapidly view and retrieve digital content. Its customers include e-commerce software provider Shopify, music-streaming service Spotify and messaging app Slack, which are all seeing usage spikes with so many people working remotely.

Some analysts are starting to see Fastly as one of the top technology winners from the accelerating trend toward working from home and staying at home.

Last month, Fastly announced a follow-on stock offering at $41.50 a share, 43% below Monday’s close.

Fastly said in its first-quarter earnings report that revenue climbed 38%, and the company increased its guidance for the year to as much as $290 million from up to $265 million. The mid-point of its range would mark annual growth of 42% from 39% last year.

In the content delivery network (CDN) market, Fastly is only about one-15th the size of Akamai (NASDAQ:AKAM) in terms of revenue, but almost half as big when it comes to market value. Fastly’s market cap now sits at $7.6 billion, while Akamai is worth $16.5 billion. Cloudflare (NYSE:NET) another competitor in the space, has more than doubled in value in the past four months to an $11.2-billion market cap.