As the internet broke yesterday, something unexpected happened in the financial markets.
Fastly - a major enterprise CDN (Content Delivery Network) Service provider had an outage, because of which services like Google, Amazon, Reddit, Walmart and many more crashed for some time.
For obvious reasons, one would imagine their stock dipped at the news. Only it didn’t. $FSLY rose by over 10% intraday.
The outage highlighted just how pivotal Fastly is to running some of the internet ecosystem. Plus, If you didn’t know about Fastly pre-outage, you do now!
This tells us how incredibly fragile ‘rules’ are in the markets. Traditional algos would predict a bearish signal after having read ‘Fastly’ and ‘Crash’ in the same sentence, but it triggered quite a pop as an increase in sentiment, even if bearish, had a net positive impact in terms of awareness and knowledge of the company’s services.