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Stock Alert: Fastly Tumbles 16% After Disclosing TikTok Reliance

Shares of Fastly Inc. (FSLY) are losing more than 16 percent or $17.78 in Thursday's morning trade at $91.14 after the edge cloud platform provider disclosed that Chinese video-app TikTok is its biggest customer, even as it reported upbeat results for the second quarter.

During the company's earnings call on Wednesday, Fastly CEO Joshua Bixby reportedly said that TikTok accounted for about 12 percent of the company's revenue in the first half of the year and is its biggest customer.

Fastly reported second-quarter net loss of $14.46 million or $0.14 per share, narrower than net loss of $15.59 million or $0.26 per share in the year-ago period. Adjusted earnings were $0.02 per share, compared to adjusted net loss of $0.16 per share last year. Revenue grew 62 percent to $74.66 million from $46.17 million in the year-ago period.

On average, analysts polled by Thomson Reuters expected loss of $0.01 per share on revenues of $71.4 million. Analysts' estimates typically exclude special items.

Fastly also raised its outlook for fiscal 2020 revenue to a range of $290 million to $300 million from the prior range of $280 million to $290 million, and now projects adjusted loss in a range of $0.06 to $0.01 per share, compared to the prior range for loss of $0.15 to $0.08 per share.

Fastly has traded in a range of $10.63 to $117.79 in the past 52 weeks.

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