Fastly surpasses Zoom as the best-performing work-from-home stock
- Fastly overtook Zoom as the stock market's best-performing work-from-home stock.
- The cloud-computing company closed Monday up 222% from the market's February 19 high, while Zoom has rallied 159% in the same period.
- Fastly focuses on content-delivery services. Some of its biggest customers include Slack and Spotify.
- Investors aren't the only ones benefiting from the run-up. The company announced a follow-on stock sale in May of 6 million shares at $41.50 each. The stock has since leaped 76%.
- Watch Fastly trade live here.
Fastly just became the stock market's new work-from-home darling.
The cloud-computing firm rallied 15% on Monday as investors turned back to stocks set to benefit from prolonged lockdowns. The leap brought Fastly's total gains since February 19 to 222%, overtaking Zoom as the best-performing work-from-home stock throughout the coronavirus pandemic.
The lead is set to widen on Tuesday — Fastly shares leaped as much as 7% in early trading.
While it's been one of the most talked-about companies over the past several months, Zoom is up 159% since the market peak.
CNBC first reported on Fastly's rally overtaking Zoom's.
Fastly focuses on content-delivery services and counts the popular firms Slack and Spotify among its customers. As stay-at-home orders drove more people to such online services, analysts eyed the cloud-computing company as a top beneficiary from the telecommuting trend.
Investors aren't the only ones benefiting from Fastly's run-up. The company sold another 6 million shares in May at $41.50 each. By Monday's close, the stock was up 76% from the follow-on offering price.
Fastly's stock surge began on May 17, 2019, when investors flocking to its initial public offering drove shares 60% higher. The stock settled at about $20 through the end of last year and into 2020 until tearing higher in May.
The San Francisco-based firm also isn't the only cloud-computing business rallying through the pandemic. Akamai shares are up 18% year-to-date and about 2% from February 19. Cloudflare is up 114% year-to-date and 108% higher from the mid-February market peak.
Fastly closed at $73.27 per share on Monday, up 275% year-to-date.
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