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Why Fastly Stock Jumped Friday

Daniel Sparks, The Motley Fool

What happened

Shares of cloud-computing specialist Fastly (NYSE: FSLY) popped on Friday. The stock jumped as much as 14.1%, and was up 8.8% as of 11 a.m. EDT.

The stock's gain follows a series of bullish analyst notes, which seemed to have driven the stock price over the last week. Including today's gain, shares have risen 61% in the last five days alone.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

On Aug. 9, following the company's second-quarter update, Stifel analyst Brad Reback reiterated a buy rating on the stock, noting its attractive valuation. On the same day, Baird analyst William Power reiterated his outperform rating, noting that the stock's pullback after its second-quarter update was a buying opportunity. Last Wednesday, Piper Jaffray analyst James Fish initiated the tech stock with an overweight rating.

Fastly's second-quarter results earlier this month marked the company's first quarterly report as a public company. Revenue during the period increased 34% year over year to $46 million, and its non-GAAP (adjusted) loss per share narrowed from $0.20 in the year-ago quarter to $0.16. 

Now what

For the full year, management expects revenue between $191 million and $195 million and a non-GAAP net loss per share between $0.51 and $0.59.

"We remain focused on driving strong revenue growth while continuing to invest efficiently and serve as good stewards of our capital," management said in its second-quarter shareholder letter.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool recommends Fastly. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com