Fastly and Cloudflare are both flaring up today… Mister market seems to be keen on those two CDN companies that both make everything run faster and more secure on internet websites. Both up over 10% today. Those two have been very hard to choose between, which is why I have a 4% stake in each one. Short term, I believe fastly will be superior in stock but long-term I think Cloudflare has a better solution, more infrastructure and data warehouses, and could win the long-term game. Short term, FSLY just upped their future guidance through the roof for next quarter and year. NET…well…they are just trucking along at 50% growth q/q. Both have plenty of cash and I expect will continue to benefit from the WFH (work from home) trend and this digital transformation that has accelerated 3 to 5 years in the last 3 months (this was stated on at least 5 of the 10 calls I listened to during the quarterly earnings calls.
As the portfolio approaches 80% returns YTD today, I think back on my suggestion that it could achieve 100% returns this year, but NEVER dreamed it would be this fast.
Be well and stay healthy, my friends.
