Fastly Stock Rebounds as Websites Recover From Outage

Plus, short interest makes up 170% of FSLY's available float

Deputy Editor
Jun 8, 2021 at 10:39 AM
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Fastly Inc (NYSE:FSLY) is reversing course from its earlier losses, up 6.7% at $54.08 at last check. The cloud company has been in the spotlight this morning, due to a widespread internet outage linked to a glitch in Fastly's system. A myriad of news sources, as well as Reddit, Pinterest, and Amazon were among those that flashed "503 errors," but as the websites get back online, FSLY appears to be bouncing back as well. 

On the charts, Fastly stock has been inching higher since its May 13 annual low of $39.47, which it stumbled to after a post-earnings bear gap in early May. On track for its fifth-straight week of gains, the equity is still down 40.4% year-to-date. 

Meanwhile, analysts are leaning bearish on FSLY. Of the 11 analysts in coverage, seven carry a "hold" or worse rating on the stock, with the remaining four a "strong buy." Elsewhere, short interest makes up a whopping 170% of the security's available float, making up nearly five days' worth of pent-up buying power.  

Despite calls outnumbering puts on an absolute basis, PGR's 50-day put/call volume ratio of 0.66 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is in the elevated 90th percentile of its annual range. This suggests a very healthy appetite for long puts of late.

These options are reasonably priced at the moment, too per the stock's Schaeffer's Volatility Index (SVI) of 69%, which stands higher than just 19% of all other readings in its annual range. This implies that options players are pricing in relatively low volatility expectations. Lastly, the security's Schaeffer's Volatility Scorecard (SVS) ranks at a 99 out of 100. This is great for options buyers, as it implies the stock tends to outperform volatility expectations. 


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