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Stocks to Watch: 5G Needs an “Edge” (FSLY, SWKS, AFFU, XLNX)

As the 5G revolution sets into place as a new foundation for technology, Edge Computing is going to be the “killer app” that ties 5G low-latency potential with visions of the magic we imagine when we think of a “smart” world coming into existence during the first half of this century.

In other words, without edge computing, 5G won’t mean a whole lot when it comes to autonomous vehicles, smart cities, robot police and doctors, smart energy grids, and lots of other futuristic concept candy. As a result, the global Edge Computing market is expected to grow from $2.8 billion in 2019 to reach $18.36 billion by 2027, according to Fior Markets.

With that in mind, here are a few of the more interesting Edge Computing stocks in play right now: Fastly Inc (NYSE:FSLY), Skyworks Solutions Inc (NASDAQ:SWKS), Affluence Corp. (OTCMKTS:AFFU), and Xilinx, Inc. (NASDAQ:XLNX).

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 announced the extension of its platform’s observability features to its [email protected] serverless compute environment. 

According to its release, these advancements include customizable logging, real-time and historical metrics, and newly launched tracing, giving developers newfound transparency into what happens after code is deployed within a serverless architecture and unlocking mission-critical visibility needed to find and fix operational issues fast. Fastly’s [email protected] helps companies build applications and execute code on its globally distributed infrastructure, at the edge of the internet, without any of the maintenance or headache of managing it directly.

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.

Fastly Inc (NYSE:FSLY) pulled in sales of $62.9M in its last reported quarterly financials, representing top line growth of 38.1%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($186.7M against $40.4M).

Skyworks Solutions Inc (NASDAQ:SWKS), together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide. Its product portfolio includes amplifiers, antenna tuners, attenuators, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators, as well as wireless radio integrated circuits. 

The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. 

Skyworks Solutions Inc (NASDAQ:SWKS) recently announced that that its Milpitas, Calif. facility has achieved AS9100D certification.

According to the company, through its defense and space business (formerly known as Isolink), Skyworks is a leading global supplier of high performance, high-quality radiation-tolerant components for aerospace, defense, medical, extreme industrial and high-reliability markets and applications.

If you’re long this stock, then you’re liking how the stock has responded to the announcement. SWKS shares have been moving higher over the past week overall, pushing about 6% to the upside on above average trading volume.

Skyworks Solutions Inc (NASDAQ:SWKS) generated sales of $766.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -14.5% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.1B against $362.2M).

Affluence Corp. (OTCMKTS:AFFU) is 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. Through acquisition and partnership, Affluence’s goal is to build a world leading business which brings together edge cloud enhancing technology for the next generation of communication. 

Major technology changes are disrupting the traditional networking sector. Current centralized infrastructure is inadequate to provide the resilience and bandwidth needed for the next generation of internet, which needs to be designed for machines. Affluence is working to provide the infrastructure and solutions to power industrial automation or smart cities, healthcare, AI, robotics and more.

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) recent announced that the company is acquiring Flexiscale (LOI signed), which gives it an A-level thoroughbred in the edge computing race. Flexiscale already has a two-year lead in the marketplace and may be the only edge cloud computing infrastructure company in the world that has already fully developed and begun deploying this game-changing technology.

It has a fully deployed Edge Cloud platform, operational and technological advantage to drive profitability on further acquisitions, energy efficient Metro datacentre in place with metro wide connectivity, highly efficient datacentre infrastructure with 85% reduction in space, 40% reduction in operating costsm and 30% increase in performance, and a partnership with Flexiant for the Edge Cloud Orchestration Software, along with a fully functional Application IoT ready Edge Service Delivery platform.

Affluence Corp. (OTCMKTS:AFFU), in its new form, is an edge computing play that is pre-revenue. 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.

Xilinx, Inc. (NASDAQ:XLNX) promulgates itself as a company that designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips, and three dimensional ICs; adaptive compute acceleration platform; software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards; and intellectual property (IP) core licenses covering Ethernet, memory controllers, Interlaken, and peripheral component interconnect express interfaces, as well as domain-specific IP in the areas of embedded, digital signal processing and connectivity, and market-specific IP cores. 

The company also offers development boards; development kits, including hardware, design tools, IP, and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications; and configuration products, such as one-time programmable and in-system programmable storage devices to configure field programmable gate arrays. In addition, it provides design, customer training, field engineering, and technical support services.

Xilinx, Inc. (NASDAQ:XLNX) updated the range of its prior guidance for its first quarter of fiscal 2021 ended June 27, 2020, guiding performance slightly lower, but not as much as analysts may have been expecting, and just putting out guidance at all in this context is generally seen as a sign of confidence.

“While we have seen some COVID-19 related impacts during the June quarter, our business has generally performed well overall, with stronger than expected revenues in our Wired and Wireless Group and Data Center Group more than offsetting weaker than expected revenues in our consumer-oriented end markets, including automotive, broadcast, and consumer. A portion of the revenue strength in the quarter was due to customers accelerating orders following recent changes to the U.S. government restrictions on sales of certain of our products to international customers,” said Victor Peng, Xilinx’s President and Chief Executive Officer.

And the stock has been acting well over recent days, up something like 5% in that time.

Xilinx, Inc. (NASDAQ:XLNX) pulled in sales of $756.2M in its last reported quarterly financials, representing top line growth of -8.7%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.3B against $1.1B).



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