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Fastly- The Next Big Thing in Cloud Networking

Fastly (FSLY) is a recently public outfit that’s aiming to be one of the next big things in cloud networking, suggests growth stock expert Mike Cintolo, editor of Cabot Top Ten Trader.

The idea centers around a simple idea: Consumers are demanding ever-faster online experiences, whether that’s getting up-to-the-second election results (New York Times), ordering tickets as soon as they’re available (Ticketmaster), streaming music or video (Spotify and others) and many other examples.

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But “old” (15 to 20 years) content delivery platforms and the like can’t keep up with today’s demands. Enter Fastly’s 45 terabit network that’s located on the “edge” of the internet (closest to the end user), providing clients the ability to offer their customers faster and more reliable digital experiences.

In a nutshell, Fastly sounds like it has the latest, greatest mousetrap in the content delivery industry, and that’s led many big clients (like those mentioned above) to sign up. At the end of June, the firm had 262 enterprise customers (up 38% from a year ago; these big fish make up about 86% of revenue), while its same-customer revenue surged 32%.

Moreover, the company’s revenues are generally usage-based, so as it lands more enterprises and as traffic grows, so too should Fastly’s business. The bottom line is drenched in red, but analysts see revenues up 30%-plus both this year and next.

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FSLY came public in early May but basically chopped around for the first couple of months of its life, including a gap down on earnings in August (exacerbated by the market).

But then the buyers went bananas, with the stock rippingh igher on massive volume! Of course, with that upside volatility comes downside potholes. But FSLY isn't broken. If you’re aggressive, you can nibble here.

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