Cloud stocks revving up as Fastly breaks out to 11% gain – Seeking Alpha

Work-from-home tech and cloud computing stocks are rising, benefiting from money flowing into familiar lockdown winners with a lack of leadership in other sectors.

Fastly (FSLY,+11.5%) is leading cloud names. The stock plunged earlier this month after CEO Joshua Bixby identified TikTok as the company's largest single customer, accounting for 12% of H1 revenue.

But there are now two potential suitors for TikTok, with Microsoft joined by Oracle, who got a nod from President Trump as a good fit.

The edge cloud platform company still has more than 20% to go until shares are back where they were before the TikTok selloff, around $109.

Edge computing also got a nod from Nvidias conference call, where CFO Colette Kress highlighted the companys new EGX Edge AI platform. While new entrants mean increased competition, they also illustrate the potential for the space. Fastly said in its latest 10Q that such increased competitions could lead to takeovers and strategic partnerships.

Other cloud stocks on the move include cloud security company Zscaler (ZS,+6.4%) and Datadog (DDOG,+4.5%).

The First Trust Cloud Computing ETF (NASDAQ:SKYY) isup 1.3%. The WisdomTree Cloud Computing ETF (NASDAQ:WCLD) isup 2.9%.

Among work-from-home tech names, Zoom Video (ZM,+5.9%) is jumping, joined by Slack (WORK,+5%) and DocuSign (DOCU,+3%).

Brazilian-U.S. investment fund 3G Capital revealed last week it started new stakes in Fastly and Zoom.

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Cloud stocks revving up as Fastly breaks out to 11% gain - Seeking Alpha