The stock prices of Fastly (NYSE: FSLY) and Cloudflare (NYSE: NET) have each more than quadrupled since the beginning of 2020. Their lofty valuations suggest the market anticipates strong revenue growth over the long term thanks to the companies’ innovative solutions that accelerate and secure access to online resources.
But with its agreement to acquire the start-up Volterra announced on Jan. 7, F5 Networks (NASDAQ: FFIV) will become an extra competitor to Fastly and Cloudflare with a differentiated offering. So should Cloudflare and Fastly shareholders worry about this new development?
Users expect applications to deliver nothing less than a flawless experience. That bodes well for the providers of content delivery networks (CDNs) and edge computing that improve application performance by hosting content closer to the users. The legacy outfit Akamai Technologies deployed almost 1,500 networks worldwide over the last couple of decades to provide such services and integrate security capabilities.