Fastly Stock Drops, Is This Bad News?

Fastly (NYSE:FSLY) is an American company that provides cloud computing services, and it’s been in the news lately due to a 4.9% drop in the value of its stock.

As expected, this brought the attention of most interested parties. Is this something we should be worried about? Let’s go over the details and find out.

Once Again, the Fed Leads the Way

We’re currently going through some pretty harsh inflation rates and the highest they’ve ever been in over four decades.

The Federal Reserve had set an initiative to mass buy growth stock bonds into motion. In return, this would benefit the overall market for this type of stock. Sadly, the Fed had to forego this initiative sooner than expected in an attempt to balance out these inflation rates.

These actions hurt the growth stocks that were once being benefited, with Fastly included among them.

Unfortunately, that wasn’t enough. The Fed is now aiming to increase interest rates as well. This had been announced a while back, but the details were yet to be shared publicly. That’s no longer the case. The Fed is intending to put this new initiative into motion as early as March.

By having a set date, the affected stocks took an “extra punch” this week, if we may state it as such.

Fastly stock is down 74% from last year’s figures with this course of events. So some volatility is to be expected in the upcoming months. However, if you’re still interested in the company, it’s set to release its latest quarterly report on February the 16th.

Maybe investors can find some better news in there.