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Cloud-based tech firm Fastly (NYSE:FSLY) is one of the hottest names on Wall Street in 2020, zooming from $10.63 in March to more than $100 recently. FSLY stock has made a lot of investors happy as of late.

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But some bears think the run in Fastly stock is nearing an end, and the stock is down 16% since hitting its recent high.

Are the good times over for Fastly? Or is this minor setback just an opportunity to buy on the dip?

The recent pullback had a lot to do with some cautious sentiment from analysts. In fact, these all came in on July 13:

So, is it any wonder that shares tumbled in mid-July?

Things like this happen in the stock market and analysts estimates certainly have an impact when it comes to market sentiment. Its times like this when an investor needs to take a hard look at a stock and decide if theyre still on board with the companys growth story, or if theyre more comfortable jumping on the analyst bandwagon and cashing in.

First, its probably helpful to remind ourselves why we liked Fastly stock in the first place. Fastly, headquartered in San Francisco, is a cloud-computing company that provides content delivery, internet security services, as well as video and streaming services.

In the age of the novel coronavirus, secure internet and quality video and streaming services are a must. More people are working from home and they require secure networks so they can do their jobs despite the restrictions of remote employment.

Fortune, in fact, calls Fastly the best-performing work-from-home stock during the Covid-19 pandemic.

Companies that use Fastlys platform include Slack (NYSE:WORK), Airbnb, Spotify (NYSE:SPOT), Stripe, Pinterest (NYSE:PINS), Vimeo and Github, which is owned by Microsoft (NASDAQ:MSFT).

Fastly says that its capable of handling more than 800 billion requests per day, and that the companys network achieved connected edge capacity of 100 terabits per second.

First-quarter earnings were a signal of things to come for Fastly. The company reported revenue of $62.92 million, which beat analysts estimates of $59.38 million. Earnings per share came in at a loss of $0.06, which was better than the -$0.12 EPS that analysts had projected.

CEO Joshua Bixby told analysts that Fastly will play an important role for businesses during the pandemic.

Fastly is the platform of choice for innovators. We are partnering with the most technologically advanced and creative companies, who we believe will not only weather the storm, but will continue to thrive in this environment. Companies are increasingly recognizing the importance of digital transformation not only to survive during these uncertain times, but also for long-term success. As we are seeing this trend accelerate and evolve, we believe we are best positioned to partner and grow with these companies as they look for a trustworthy and modern platform.

Analysts may be jumping off the bandwagon, but there are still strong buy signals for Fastly stock.

Fastly continues to have strong sales growth and should continue to exceed analysts earnings expectations as the Covid-19 pandemic continues to force companies to telework.

The slip in stock price appears to be a great time to pick up Fastly stock at a discount and ride the wave higher.

Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at@1patricksanders. As of this writing, he did not hold a position in any of the aforementioned securities.

Read more:
This Is a Good Time to Buy Fastly Stock on the Dip - InvestorPlace