I think FSLY is down a few percent today because of this. I’m not selling any FSLY. Actually today might be the time to buy – there’s a reasonable chance we could get last second good news this weekend and it goes up.
If we don’t, Monday will probably be an even better buying opportunity for FSLY.
TikTok is Fastly’s largest customer by revenue, so obviously that revenue matters for them short term. But long term, TikTok doesn’t matter. Fastly will do just fine without them if it comes to that.
CNBC’s Eunice Yoon reporting from Beijing says this action is very watered down, eliminating only 19 million USA uses of Wechat, and not the 1.4 billion users worldwide, which was the expressed concern of American business interests.
TikTok users will hardly be impacted at all until November 12, after the election, restricting only upgrades and perhaps new downloads.
Is this really bad news for FSLY? Seems neutral to positive from here. There remains some uncertainty for a few more weeks, but this 5-6% revenue risk might be mostly baked in already or be subordinated to more important matters between now and November 12, by which time FSLY will have reported Q3.
Just to clarify, the “ban” in the US simply means no new downloads or updates. Users here that have the app (every teenager) can still use the app, seems like minimal if any impact on FSLY in the short term. https://www.cnn.com/2020/09/18/tech/tiktok-ban-sunday-need-t…
the “ban” in the US simply means no new downloads or updates.
That is a grand assumption and sidesteps the fallout of missed updates, as iPhone Fortnite users recently discovered. A subsequent Fortnite software update broke their interoperability with other users, rendering their existing install useless, without Apple Store update support.
We have no basis that TikTok users will continue their experience with their present release version.
🆁🅶🅱
post tenebras lux For not in my bow do I trust, nor can my sword save me.
Hihi,
A one-liner like that is not an appropriate post for our board, and will be deleted. Please read the Rules of the Board which is posted every Monday.
Saul