Fastly (NYSE:FSLY) has been on fire in 2020, and shares are once again surging higher on Friday. However, without any official news from the company, why is FSLY stock surging?
Although it is hard to say for sure, it looks like speculation from one Twitter (NYSE:TWTR) user is to thank. Early this morning, a tweet suggested Cisco (NASDAQ:CSCO) is in talks to take over Fastly. Just like that, FSLY stock exploded.
As of right now, that is all investors have. But with a current market capitalization of $10.6 billion compared to $187 billion for Cisco, a lot is at stake. Plus, Fastly has already had such an impressive year, up more than 360%. This means the story sounds extra sweet if it turns out to be true.
However, investors should also consider the bigger picture for Fastly.
Amid the novel coronavirus, Fastly and FSLY stock have shone. This is because Fastly is a content delivery network, meaning that it quickly pushes data around the internet. Essentially, Fastly is one of those companies that makes online shopping and entertainment streaming possible. Just as we have seen the likes of Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) rise on their own coronavirus catalysts, FSLY stock has benefitted as a behind-the-scenes play.
Additionally, Fastly has one particularly high-profile client. ByteDance, the parent company of TikTok, is currently the largest client. This means that Fastly has come into the spotlight for its role in making short-form videos appear on devices around the country. It also means that with TikTok in the crosshairs of the U.S. government, FSLY stock has been under scrutiny.
However, that scrutiny is not holding FSLY back today. As of this writing, shares are up 13.3%
The Bottom Line on FSLY Stock
Right now, Fastly is climbing higher on nothing but vague speculation. Keep a close eye on the news, and look for more information about a Cisco takeover.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.