Fastly + Google partnership

Impressive new partnership between Fastly and Google. This partnership allows developers to build, test, and deploy applications in a scalable, reliable cloud environment.

https://www.fastly.com/partner/gcp

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Hi,
I believe that this partnership was announced September 10, and so is not new. I searched at Fastly, Google and via Google and found nothing that was less than 4 weeks old.

Still confused as to why Fastly jumped so much today. Had this been correct it would have provided a nice, intelligent explanation.

Anyone got any idea what happened?

This is what MF had to say…which echoed two other articles I read: https://www.fool.com/investing/2020/10/07/why-fastlys-stock-…

I don’t buy it. Surely something meaningful happened? Or am I just way too naive about how rational the market is?

Long Fastly but very confused,
Larry

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The rise for FSLY doesn’t make a lot of sense without any news. What we can point to is that the Tic Tok issue seems to be quieting, and the number of shares short as of the middle of last month was about 8MM shares. Without more bad news perhaps it was time to exit those positions? I’ve never dabbled in shorting a stock, I doubt it’s a short squeeze, and yet the volume today was some 22.8MM shares, or four times the average volume.

Curiouser and curiouser…

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This is what MF had to say…which echoed two other articles I read: https://www.fool.com/investing/2020/10/07/why-fastlys-stock-……

I don’t buy it.

I agree. FSLY went up on the day Trump said no stimulus, and it went up on the day Trump said some major stimulus would be good. I think it went up even the day before both of those days. This ain’t some trading on macro conditions thing.

Someone’s acquiring FSLY shares. Whether it’s a fund like ARK or Renaissance or some whipper-snapper on Buffet’s farm team, or some eventual take-over bid, I don’t know. But, I’m not selling into this rally.

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Impressive new partnership between Fastly and Google.

Long Fastly but very confused,

Curiouser and curiouser…

Someone’s acquiring FSLY shares.

I can give a very good technical explanation of a perfect storm: breakout, gap filling, and short squeeze…

https://softwaretimes.com/pics/fsly-10-07-2020.gif

but that’s not my point. One can make fairly good long term projections for stock prices but daily moves are mostly random walks. So far in this thread the focus has been on Fastly’s business model but no attention has been placed on the market. One has to remember that there is more to the market than investors, there are also traders and speculators who have very different points of view. Here is a scenario to ponder.

Fastly has very good fundamentals that have been propelling the stock price from the March low to July when Trump puts a ban on their biggest customer, Tic Tok. The market hates uncertainty and FSLY goes into a crazy three month volatile consolidation while the uncertainty clears. For reasons unknown the dam breaks on October 7 and technical trading takes off as described above.

https://softwaretimes.com/pics/fsly-10-07-2020-1.gif

What’s my takeaway? In earlier posts I’ve said that Fastly’s new architecture is a winner but there is no way I can predict daily stock prices. I like FSLY as a long term investment but the crazy volatility also makes FSLY one of the best covered call candidates. But you can’t mix the two. Three quarters of my FSLY position is a long term hold and one quarter is for covered call trading.

Do I care that FSLY broke out on October 7 or why it did so on October 7? No. Both my short term and long term FSLY positions are firing on all cylinders. That’s what counts.

Yesterday FSLY became my largest position and the covered call part will be converted partly to cash and partly redeployed to a new position I’m accumulating but since Tesla is banned I can’t talk about it.

Takeaway, don’t sweat the daily moves.

Denny Schlesinger

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