Shares of Fastly fell 28% after hours after the company lowered its guidance for the third quarter
The company, whose core technology helps businesses speed delivery of digital content to consumers, said it now forecasts revenue of $ 70 million to $ 71 million, up from the previous $ 73 million5 million to 75 $ 5 million
« Due to the impacts of the uncertain geopolitical environment, the use of the Fastly platform by its previously disclosed largest client did not meet expectations, resulting in a significant reduction in revenues for this customer, « the company said in the statement.
Fastly did not identify the client However, CEO Joshua Bixby said in the company’s latest earnings call that TikTok was its biggest client, accounting for around 12% of revenue in the first six months of the year. year, dropping the stock by nearly 20% on this announcement
TikTok has been caught in a complicated geopolitical dance between China, where its parent company ByteDance is based, and the United States, with President Donald Trump threatening to ban the app altogether unless a US has it. buyer was found Last month, the president approved « in concept » a deal between TikTok, Oracle and WalMart that could allow the app to continue operating in the U.S, but the agreement is not yet finalized
As of Wednesday’s close, shares of Fastly were up 514% this year, the second biggest gain among cloud-based vendors, behind only Zoom, which jumped 648%
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Fastly, Stock, Revenue
World news – US – Quickly plunges over 25% on reduced revenue forecast
SOURCE: https://www.w24news.com
