By Christiana Sciaudone
Investing.com -- It does not pay to be a friend of TikTok's today. Fastly (NYSE:FSLY) shares sank 20% on Thursday after the Chinese social media app was revealed to be its single biggest customer.
This is despite Fastly boosting guidance for the year.
Of course, things might change on a dime if Microsoft (NASDAQ:MSFT) buys TikTok.
Chief Executive Officer Joshua Bixby told Barron's that TikTok accounted for 12% of Fastly's revenue in the first half of the year. U.S. President Donald Trump has threatened to ban TikTok if not purchased by a U.S. company by mid-September. Microsoft wants in.
It's unclear how that might affect Fastly, which provides content delivery network services. The company raised guidance for the year, with revenue expected between $290 million to $300 million compared to the previous $280 million to $290 million, and reported 62% sales growth for the second quarter, to $75 million, compared to a year earlier. The total customer count increased to 1,951 from 1,837 in the first quarter.
Shares more than quintupled in 2020 through Aug. 4. The stock has two buy ratings, three holds and two sells.