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Why Fastly Stock Rose Higher on Monday

What happened

Not for the first time this year, content delivery network (CDN) operator Fastly (NYSE: FSLY) had a big announcement concerning its top management. Monday morning, it announced a new executive appointment, and investors clearly approved -- they traded the stock up by nearly 2% on the day.

So what

Fastly announced that it has appointed a new chief product officer: Lakshmi Sharma, who is to begin her job immediately. A seasoned executive in both the tech and consumer goods industries, Sharma most recently served as the director of product management at Alphabet's Google Cloud. She has also served in management positions at companies such as Target and Cisco Systems.

Image source: Getty Images.

In the press release trumpeting her appointment, Fastly CEO Joshua Bixby said, "Having been at the helm of product initiatives at technology giants and start-ups alike, Lakshmi knows what it takes to develop customer-centric, security-first roadmaps and bring innovative new products to market."

Fastly likes to move fast when filling important top-level managerial positions. In June, it tapped another Alphabet veteran, Ronald Kisling, to be its new CFO. This was less than two months after the company announced Kisling's predecessor, Adriel Lares, had stepped down from the job.

Now what

Sharma's appointment seems to indicate that Fastly can still attract managerial talent with good experience in the tech sphere. The company will probably need that talent, as its recent financial and operational metrics showed relatively weak revenue growth, along with declines in both margins and customer retention rates.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Fastly. The Motley Fool has a disclosure policy.


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