User comment: FSLY was up big today, any idea why?
User comment: I held on to a small position in AYX and am now glad I did.
Victor: FSLY is up again another 10% today, surging to my second largest position. I believe it is due to several factors and more about what didn’t happen than what did. They had fantastic earnings and increased their guidance last quarter, but got beaten up because their largest customer is a Chinese customer called TikTok (ask your kids), making up 12% of its revenue. Trump’s tweets that he was going to shut them down in the US brought FSLY into the crosshairs. They’ve had several favorable ruling‘s and people have also realized that only 6% of it was in the US and there’s now the potential of an Oracle partnership to solve the problem. I took the opportunity to “be greedy when others are fearful” when it dropped to the 80s and 90s to add to my position, as the fundamentals of the company are sound and even if they lose this customer in the United States, it won’t impact their incredible growth trajectory.
Quite a stunning day in the market today… Melt up? No where else to go? Perhaps a start to the build up to next earnings. All great companies, solid fundamentals, incredible growth, and yes, nosebleed valuations to go with it. Trying to remain conservative, but not fight the incredible trend we are in. I usually say you can’t fight an ebbing tide, but it goes both ways….as long as you don’t get trapped in a tidal wave 🌊 and end up smashed against the wall of a skyscraper. Enjoy the ride. Cheers!
