It’s been the year of the cloud stocks (exhibit A and B: Twilio and Snowflake), but not all cloud companies are keeping their pandemic boost.
But it has not been a smooth upward trajectory for Fastly (NYSE: FSLY), a San Francisco-based company that helps deliver digital content. At one point in the pandemic, the company that counts Pinterest and GitHub among its customers was the best-performing tech stock during the crisis and achieved a valuation of about $15.5 billion.
When the pandemic shut down economies and many companies shifted to work-from-home models, some expected to see a sharp increase in cloud adoption. And while it’s true that some categories have boomed and a few companies have experienced tremendous growth—for instance, Zoom’s market cap more than quadrupled between December 2019 and August 2020—overall cloud spending hasn’t grown abnormally.
Of course, the rates differ by categories: Security and collaboration services are notable exceptions, with spending on the rise to accommodate more remote work.
New York-headquartered Sonrai Security was founded by Dubliner Brendan Hannigan and his business partner Sandy Bird in 2017, but operated in stealth mode until going public in January 2019. Sonrai, which means “data” in Irish, helps large corporations track, organize and protect data that is stored in the cloud.