Bert on FSLY

I don’t follow Bert but SA sent me a notfication so I had a look:

Fastly’s Share Price Implosion - A Significant Opportunity

Nov. 9, 2020 11:24 AM ET|6 comments | About: Fastly, Inc. (FSLY)

• Most of the miss was a function of issues with the company’s largest customer TikTok that had nothing to do with Fastly’s technology or capabilities.…

I agree with Bert, on October 30 I wrote that the problem as mostly Tik-Tok:

The Tik-Tok Debacle

Tik-Tok is a perfect example of why 10% clients are risky, not to say dangerous. What motivated Tik-Tok to move away from Fastly is debatable. It could just as easily be business as political reasons. From my story’s perspective, is Tik-Tok a better fit for Akamai’s old architecture or for Fastly’s new architecture? Let’s just say that Tik-Tok is large enough and simple enough that it can use a vertically integrated CDN. Don’t expect any provider of anything to have 100% market share, it’s just not realistic.

A great many explanations have been given for the Tik-Tok Debacle. The one that bothers me the most is the charge that Fastly is not founder driven because the founder is no longer the CEO. That charge would be valid had Artur Bergman left the company but Artur Bergman is the Executive Chairman & Chief Architect. Not every founder is a businessman like Jeff Bezos and Elon Musk. When I founded my first company my partner was the salesman and I was the administrator and we were both the technocrats.

My view is that the problem has a lot more to do with Tik-Tok than with Fatly’s Edge future.

The post got 89 recs so there must be a few Fools who agree.

This morning I lucked out. I took some profits on TDOC premarket before the vaccine news came out at $214.70 and added to FSLY at $72.50.

Interestingly, FSLY is holding up much better than ZM and DOC

At 3:30 PM
Ticker     Down
FSLY       3.0%
TDOC      12.4%
ZM        15.0%

Luckily I took ZM profits at $506.75 and $574.70 and sent some cash to my emergency fund. I wonder what other surprises the market has for us.

Denny Schlesinger