By Christiana Sciaudone
Investing.com — One would think anything cloud has a major silver lining. Alas, not all cloud companies are equal.
Fastly (NYSE:) plummeted more than 24% after missing estimates and providing weak guidance amid the departure of its chief financial officer.
A loss per share of 12 cents missed the expected 10-cent loss, on sales of $84.85 million, below estimates of $85 million. For the second quarter, Fastly said it forecasts sales of up to $87 million, below the estimated $91 million, and a loss of as much as 19 cents, compared to the expected 9-cent loss.
Fastly said it is conducting an external search for a new CFO as Adriel Lares steps down after five years.
Fastly is down some 60% from a record hit about six months ago. Cloud services have been in increasing demand amid the shift from office to homes as the global pandemic rages.
“Growth is slowing very fastly,” said Citi’s Tyler Radke, according to StreetInsider, maintaining a sell on the stock.
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