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Investing.com — Fastly (NYSE:FSLY) Inc. shares posted their biggest loss on record a day after the company released disappointing third-quarter revenue numbers. The news dragged down other cloud providers.
The company, which had soared about 450% year-to-date, said Wednesday at the close that sales would come in between $70 million and $71 million. Analysts were expecting anywhere from $74.2 million to $76 million.
Shares fell 24%.
Fastly cited lower spending from a top customer, Chinese Internet giant ByteDance Ltd, aka TikTok, and ongoing U.S.-China tensions.
“Due to the impacts of the uncertain geopolitical environment, usage of Fastly’s platform by its previously disclosed largest customer did not meet expectations, resulting in a corresponding significant reduction in revenue from this customer,” the company said in a statement.
Analysts were quick to react, with both Baird and Stifel cutting their ratings on the stock.
Among other cloud companies to take a hit on the news were Akamai Technologies Inc (NASDAQ:AKAM)., Limelight Networks (NASDAQ:LLNW) Inc., Twilio (NYSE:TWLO) Inc. and Datadog (NASDAQ:DDOG) Inc.
