August 5, 2020

That Went Down Fastly

Today Fastly (NASDAQ: FSLY) reported earnings, Fastly is a content delivery network company to translate that in english they help users view digital content more quickly. The company also provides security, video delivery, and so-called edge computing services.

Fastly is a high growth company that's up almost 400% in the last three months. Today, the company beat on revenue and earnings but investors were still not pleased. This sent the stock crashing down 14%

So what happened? Well it turns out that TikTok is the company's single largest customer, accounting for 12% of revenue this past quarter. With the risk of TikTok being ban investors cashed out and the stock sold off. 

All Gains And No Loss

After today’s session, it’s hard not to notice where the market is in relation to pre COVID highs. If you don’t want to do the math, we’ll do it for you: too close. 

Even though we have been told that we will hear about the next Stimulus Package by the end of the week, we can’t help but wondering if anything can really be enough to support the levels the market is trading at. 

Who knows though, maybe the infinite bull market is part of the “New Normal.” We can’t predict the future, and you can’t either. What you can do, though, is trade responsibly. 

Free Stuff!

Scroll To The Bottom And Find Your Link!

Facebook Reels In New Customers

Amidst a grueling war for technological clout between the United States and China, Facebook (NASDAQ: FB) announced today that their rival to the wildly popular app Tik Tok would be released. 

The concept, known as Instagram Reels, takes advantage of Instagram’s existing 1 billion+ users.

While China and the US and Microsoft squabble over the ownership of TikTok, Zuck is back at it again. 

After launching this new product today, even though FB shares are slightly down, they are still trading up 8% from pre earning levels.

We at EVO can’t wait to see how popular TikTok creators react and whether Reels will be able to drag any of them over to a new platform. 

Betting On The Future

Roku (NASDAQ: ROKU) just saw some incredible revenue growth of 42% YOY. On top of this, they lost about $.15 a share less than analysts had predicted. 

Still, they’re trading down a few points in the afterhours session; the market is not taking kindly to their outlook. With fears of TV ad spending not returning to pre COVID highs until next year, the street is not looking as fondly at Roku’s growth potential.

Remember, stocks like this trade at such a high premium based on the promise of future rewards. When that promise seems like it is not as reliable, we can see a pullback. 

Are We There Yet?

Richard Branson, the legend who went from owning a mail order vinyl store to flying hot air balloons of the ocean to owning fleets of airplanes, has been riding the struggle bus the last couple of days. 

His most high profile company, Virgin Galactic (NYSE: SPCE), brought in no cash last quarter and is going to release new shares to help make up for it. 

Investors have been told that 2020 would be the year that flights start taking place, but now its clear that we’re out until at least 2021, after Sir Branson tries it out himself. 

Until then, the company will be hard pressed to make ends meet. On top of that, it is helmed by an eccentric billionaire, so you never know what might happen.