We are closer to the edge than you think. The 5G transition has created a promise. But following through on that promise demands something beyond just that infrastructure. The edge computing revolution squares that circle and represents the bridge between the past and future. It also represents something that is rapidly evolving, but entirely in the right direction for investors.
Estimations vary widely, but all are bullish. The edge market was estimated between $1.7B to $7.9B in 2017, and is projected to grow to $16.5B to $43.4B between 2025 and 2027, producing a compound annual growth rate of between 11%-37%, making this potentially one of the most remarkable opportunities in the years ahead.
With that in mind, here are a few of the more interesting Edge Computing stocks in play right now: Cloudflare Inc (NYSE:NET), Fastly Inc (NYSE:FSLY), Affluence Corp. (OTCMKTS:AFFU), and Dell Technologies Inc (NYSE:DELL).
Cloudflare Inc (NYSE:NET) bills itself as a cloud platform that delivers a range of network services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and Internet of Things (IoT) devices.
Its security products comprise Cloud Firewall, Bot Management, Distributed Denial of Service, Infrastructure Protection, IoT, SSL/TLS, Secure Origin Connection, and Rate Limiting. The company also offers performance solutions, which include Content Delivery, Intelligent Routing, and Mobile Software Development Kit, as well as Content, Mobile, and Image Optimization.
Cloudflare Inc (NYSE:NET) also just announced that Tokyo, Japan, is the home of its newest Asia-Pacific (APAC) office. This office will help the company grow brand awareness, support customers, and recruit new talent.
Cloudflare also announced that Masa Aoba, a seasoned technology executive with more than 30 years of experience in the IT industry, will lead this new office and team.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. NET shares have been moving higher over the past week overall, pushing about 4% to the upside on above average trading volume.
Cloudflare Inc (NYSE:NET) managed to rope in revenues totaling $91.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 47.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($587.9M against $108.3M).
Fastly Inc (NYSE:FSLY) trumpets itself as a company that operates an edge cloud platform for processing, serving, and securing its customer’s applications.
The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. It is a programmable platform designed for Web and application delivery. As of December 31, 2019, the company’s edge network spans 68 points-of-presence worldwide. It serves customers operating in digital publishing, media and entertainment, technology, online retail, travel and hospitality, and financial technology services industries.
The company was formerly known as SkyCache, Inc. and changed its name to Fastly, Inc. in May 2012. Fastly, Inc. was founded in 2011 and is headquartered in San Francisco, California.
Fastly Inc (NYSE:FSLY) just put out word that the company will release financial results for the second quarter of 2020 after market close on Wednesday, August 5, 2020.
The company will issue a press release notifying that its quarterly shareholder letter has been posted on its Investor Relations website at https://investors.fastly.com.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. FSLY shares have been moving higher over the past week overall, pushing about 2% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 5% in that time on strong overall action.
Fastly Inc (NYSE:FSLY) managed to rope in revenues totaling $62.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 38.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($186.7M against $40.4M).
Affluence Corp. (OTCMKTS:AFFU) is a diversified technology company focusing on innovative Edge Cloud and 5G enhancing technologies formed as a holding company focused on the acquisition and roll-up of synergistic companies providing 5G enhancing infrastructure and technologies, edge computing, and innovative cloud solutions.
The company is working toward taking the fast lane to a dominant position in the edge computing revolution, building a world leading business at the intersection of edge cloud enhancing technology and the next generation of communication. The company seeks to position itself as a global leader in edge computing solutions that will power next generation internet and enable any town or city to become a ‘smart city’ through the company’s intelligent IoT smart city solution builder.
Affluence Corp. (OTCMKTS:AFFU) recently announced that it has appointed Joe Abrams to serve on its Advisory Board. Abrams specializes in emerging growth companies in several areas, including technology, drug discovery technology services, consumer products, big data, and online job placement. In addition, he has vast experience in assisting in public offerings, acquisitions and capital raisings.
Mr. Abrams was a cofounder of The Software Toolworks, a publicly held developer, publisher, and distributor of educational and entertainment software, which was sold to Pearson, Plc., for $462 million in April 1994. Abrams also co-founded Intermix Media, the parent company of MySpace, which was sold to News Corp. in September 2005 for $580 million. Mr. Abrams is also a member of the Board of Trustees at The University of Rochester.
If you’re long this stock, then you’re liking how the stock is acting. AFFU shares have been moving higher over the past week overall, pushing about 17% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 10% in that time on strong overall action.
Affluence Corp. (OTCMKTS:AFFU), in its new form, is an edge computing play that is pre-revenue. However, the
But the company’s aggressive moves to lay claim to a leadership position suggest a relatively short period before we start to see meaningful financials surface that give us a better picture. Right now, it is a highly speculative prospect with a promising start through strategic positioning.
Dell Technologies Inc (NYSE:DELL) designs, develops, manufactures, markets, sells, and support IT hardware, software, and services solutions worldwide. It operates through three segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware.
The ISG segment provides traditional and next-generation storage solutions; and rack, blade, tower, and hyperscale servers. The CSG segment offers desktops, notebooks, and workstations; displays and projectors; attached and third-party software and peripherals, as well as support and deployment, configuration, and extended warranty services. The VMware segment supports and addresses various IT priorities of customers, including accelerating their cloud journey, modernizing their applications, empowering digital workspaces, transforming networking, and embracing intrinsic security.
Dell Technologies Inc (NYSE:DELL) is exploring a potential spin-off of its 81% equity ownership interest in VMware (NYSE:VMW).
Although this exploration is in an early stage, Dell Technologies believes a spin-off could benefit both Dell Technologies and VMware shareholders, team members, customers and partners by simplifying capital structures and creating additional long-term enterprise value. Any potential spin-off would not occur prior to September 2021 and would be intended to qualify as tax-free for U.S. federal income tax purposes.
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 4% in that timeframe.
Dell Technologies Inc (NYSE:DELL) pulled in sales of $21.8B in its last reported quarterly financials, representing top line growth of -0.2%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($12.9B against $50B, respectively).