New Trade for June 23rd 2020

Futures dipped last night after White House trade adviser, Peter Navarro, stated that the trade deal was “over,” briefly causing the Dow Jones futures to slide into negative over 400 points, recovering moments later as Navarro quickly walked back his statement, saying his earlier comments on Fox News had been taken “wildly out of context.”  The president reinforced the sentiment via twitter writing, “The China Trade Deal is fully intact.” and stocks climbed back into the green and now set to open over 300 points higher. 

 Markets seem to be in the clear, for now, but last night’s sharp move could be an indicator of how fragile the stock market currently is.  Not only are we surfing the waves of US/ China trade deal insecurity, but Coronavirus cases are up significantly at home and abroad increasing  fear of another shutdown.

Current market climates serve as a reminder of the importance of keeping some dry powder on hand in case an attractive opportunity arises.  

Speaking of opportunities, we are looking at one company for its growth potential and the service it provides.  

Edge computing technology makes accessing apps and data on the cloud faster by shifting the processing closer to the edge of the cloud where information is generated and used.  Fastly (NYSE:FSLY)  provides a leading edge computing platform that’s secure and programmable.  

Last week, Fastly’s management announced that it had reached 100 terabits per second of connected edge capacity, making its content delivery network services faster than ever.  Adding to that, a deal was made to allow Shopify merchants to sell some goods on Walmart’s website, which could indirectly benefit Fastly.

 Some investors have been drawn to Fastly as they look for investments that could thrive during a recession.  Over the past 12 months the price has skyrocketed 279%.  Investors should keep in mind that the meteoric rise of the share price during unprecedented economic circumstances could bring about some volatility in the near term. Having said that, we think Fastly could be a great long term investment.