Fastly: in slow lane as falling TikTok usage bites

Edgio

15/10/2020 11:57

** Fastly  FSLY.N  shares slump 28% in U.S. premarket trade
after the content delivery network firm cuts its Q3 revenue
outlook as usage at its largest customer fell short of its
expectations
    ** At least two analysts say the "largest customer" was
TikTok, which faces backlash from a number of countries on
security and privacy concerns related to its links to China
    ** "Fastly, having climbed over 550% this year, found the
elevator down after hours," says a London-based trader
    ** Analysts at DA Davidson and Credit Suisse also expect
other content delivery network providers to be hit by the news
on falling usage of TikTok, the video-streaming app
    ** Akamai  AKAM.O  shares are down 4% premarket, Limelight
Networks  LLNW.O  -2% and Cloudflare  NET.N  -7%
    ** Still, DA Davidson and CS analysts backed Fastly stock,
sticking to their "buy" ratings

 (Thyagaraju Adinarayan)
 ((thyagaraju.adinarayan@tr.com; Twitter @thyagu))