Podcast #28 - Cloudflare vs Fastly

With mobile devices, connected homes, connected vehicles, the internet of things, and 5G networks, our demand for data is growing rapidly year-over-year, requiring ever-increasing speed, reliability and security. In this week's Pod, we put two fast-growing content delivery networks, Cloudflare and Fastly, head-to-head to decide which one is the better investment right now. Cloudflare and Fastly are both leading the evolution of edge computing, bringing not only data but processing closer to the end-users. Having computing resources at the edge improves latency and speeds, enabling new applications such as connected autonomous vehicles and cloud gaming. Cloudflare has over 200 points of presence (PoPs) in over 100 countries, putting 99% of the connected population within 100ms of the edge. While Fastly has 60 PoPs in 26 countries with their ultra-high-performance technology. The total addressable market is estimated to reach $117B by 2025, as both companies expand out of their content delivery origins into edge computing and network security. With annual revenues of $300M-$400M, there's a lot of runway for both companies to continue to grow. Both Cloudflare and Fastly have rich valuations, but Cloudflare is currently priced significantly higher. Does Cloudflare’s business performance justify this difference or is Fastly a relative bargain? ----- If you enjoyed this episode, please consider subscribing to the Telescope Investing website at https://telescopeinvesting.com/subscribe/ Or you can contact the hosts Luke & Albert at https://twitter.com/LukeTelescope https://twitter.com/AlbertTelescope For useful further reading see: https://softwarestackinvesting.com/fastly-fsly-q1-2020-earnings-results-review/ https://hhhypergrowth.com/flare-ups/