
Heyย Global Investor, here's what you need to know before the US markets open.
Market Snapshot ๐
S&P 500ย (Wednesday Close) 3,488.67ย โ23.26ย (0.66%)
NASDAQย (Wednesday Close) 11,768.73ย โ95.17ย (0.80%)
FTSE 100ย (5 PM IST) 5830.65ย -104.41 (-1.75%)
NIFTY 50ย (Today's Close) 11,680.35ย โ290.70ย (2.43%)
USDINRย (5 PM IST) 73.44ย (1 Year +2.51%)
A Quick Drop For Fastly
Lower-than-expected usage from its largest client forced Fastly to qualify its earlier annual revenue guidance as unreliable. Its stock dropped 25% in after-hours trading.
Background: Fastlyโs technology is behind companies delivering digital content to their consumers. The company helps speed up e-commerce transactions, business software downloads, and video streaming to mobile devices. Fastlyโs next-generation content delivery network is designed to accelerate and secure enterprise websites.
What Happened?ย ByteDance had accounted for 12% of Fastlyโs revenue in the first six months of the year, making TikTokโs parent its largest customer. CEO Joshua Bixby revealed as much in the most recent earnings call. He also blamed the uncertain geopolitical environment for weaker-than-expected usage from a few of its clients.
Fastly also issued a Q3 sales warning, and revised its Q3 revenue expectations from about $74.5M to about $70.5M. The company also said its current revenue expectation for the full year is not to be relied upon. In its earnings call scheduled for Oct 28th, Fastly will also issue revised full-year revenue guidance in light of the current situation.
Its stock, which had soared 30% in just the past two weeks cratered in pre-market trading, losing 29.38% at the time of this writing. The uncertain environment Bixby was alluding to is the run-in ByteDance has been having with the Trump administration over data privacy. The unknowns are too many in how the TikTok-Oracle-Walmart saga will play out. Fastly has turned out to be collateral damage in this roller coaster ride, at least for now.
Market reaction:ย As of Wednesdayโs close, Fastly shares were up 514% YTD, only behind Zoom, which is up 648% YTD. Its stock closed with a 4.39% decline at $123.18 on Wednesday. It is currently trading around the $87 mark before-hours.
Company Snapshot ๐
FSLY $123.18 -5.65 (-4.39%)
Analyst Rating (12 Ratings) BUY 58%ย ย HOLD 25% ย SELL 17%
Newsworthyย ๐ฐ
New Features: Zoom Video adds online events, apps to service (ZMย -1.84%)
Unethical Behavior: Wells Fargo fires more than 100 workers over alleged pandemic-relief fraudย (WFCย -6.02%)
Big Loss: United Airlines posts $1.8 billion net loss in pandemic slump, cuts cash burn (UALย +0.99%)
Later Todayย ๐
6.00 PM IST:ย Initial jobless claims (regular state program, SA)
6.00 PM IST: Continuing jobless claims (regular state program, SA)
Before Market Open:ย Home BancShares Inc (HOMB) Earnings
Before Market Open:ย Signature Bank (SBNY) Earnings
Before Market Open:ย Honeywell International Inc (HON) Earnings
Fun Fact of The Dayย ๐
An antโs sense of smell is stronger than a dog.
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