Fastly Stock Jumps 3.1% Amid Interest Rate Cut Speculation

Fastly (FSLY) stock jumped 3.1% after Federal Reserve Chair Jerome Powell indicated possible interest rate cuts. The broader market surged, with the Dow Jones, S&P 500, and Nasdaq Composite rising 1.5% or more. Fastly's shares cooled down to $7.41, up 2.5% from the previous close. The company's shares have been volatile, with 43 moves greater than 5% over the last year. Fastly is down 19.5% since the beginning of the year and 34.6% below its 52-week high.

Fastly (FSLY) stock experienced a 3.1% increase in the afternoon session on July 2, 2025, following Federal Reserve Chair Jerome Powell's remarks indicating potential interest rate cuts. The broader market reacted positively, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all rising by approximately 1.5% or more. Fastly's shares cooled down to $7.41, up 2.5% from the previous close [1].

Powell's comments, delivered at the Jackson Hole Symposium, suggested that a downward adjustment in the Fed's benchmark rate may be warranted due to current economic conditions, including a marked slowdown in job growth. While Powell did not promise a rate cut at the next Fed meeting in September, his tone was enough to rally investors, who were already anticipating a rate cut [2].

Fastly's stock has shown significant volatility over the past year, with 43 moves greater than 5%. Despite the recent rally, Fastly remains down 19.5% since the beginning of the year and is trading 34.6% below its 52-week high of $11.34 [1]. The company's shares have been sensitive to interest rate fluctuations, as high-growth technology stocks often are.

Fastly's recent Q2 earnings report showed a re-acceleration in growth rates, customer additions, and net revenue retention rates, indicating a turnaround under new leadership [3]. The company's new CEO, CFO, and President of Sales have driven improvements in net-new enterprise customer additions and net revenue retention rates. Additionally, Fastly's new security products have reached approximately 20% of its revenue, and the company is expanding its footprint overseas. These developments suggest that Fastly may be on the cusp of a rebound.

Investors should consider Fastly's modest valuation multiples and potential for upside, particularly if the company continues to pick up new enterprise customers and improve its net retention rates. However, the stock's volatility and sensitivity to economic conditions should be taken into account.

References:
[1] https://finance.yahoo.com/news/fastly-fsly-stock-know-172550143.html
[2] https://www.npr.org/2025/08/22/nx-s1-5509941/jerome-powell-federal-reserve-interest-rates-jackson-hole
[3] https://seekingalpha.com/article/4815224-fastly-tipped-for-a-rebound-as-traffic-heats-up-upgrade