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Investing.com — Not so fast.
Fastly (NYSE:FSLY) fell 4% after Piper Sandler (NYSE:PIPR) said it’s unlikely Cisco (NASDAQ:CSCO) will buy the company.
Rumors of a takeover circulated last week, which Piper analyst James Fish said would make strategic sense and help Cisco in the cloud world, but Cisco has said it isn’t interested in large M&A, according to Seeking Alpha.
Akamai (NASDAQ:AKAM) would “make more sense” as a takeover target for Cisco.
Fastly has rallied more than 300% this year, as one of its biggest customers, TikTok (yes, that TikTok), has had a banner year with the U.S. population largely stuck at home trying to prevent the spread of the coronavirus.
In October Fastly slumped a day after the company released disappointing third-quarter revenue, which dragged down other cloud providers.
Fastly cited lower spending from TikTop, a top customer, amid 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 at the time.
A deadline for ByteDance to sell TikTok’s U.S. operations on Friday passed and negotiations appear to be ongoing, according to Cnet. ByteDance struck a preliminary deal with Oracle (NYSE:ORCL) and Walmart (NYSE:WMT).
