Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

The reviews from different experts suggest that Fastly Inc. has been experiencing challenges in the last few quarters, but there are signs of improvement in terms of profitability and cash burn. Despite a decrease in net retention rate, the company is expected to continue growing its revenue and achieve EBIT positivity in the near future. The overall consensus is that Fastly Inc. may still have room to move higher in the market, but it is considered a risky investment. The balance sheet has also shown improvement, indicating a positive trajectory for the company.

Consensus
Improving
Valuation
Undervalued
HOLD
Fastly Inc.
Bought around $80, now under $10.

Very skewed to edge computing. Biggest problem is it's trying its best to be profitable. Reporting well, revenues are sort of in line. Cut guidance on May 1. Write some calls to try to recoup some money. Don't buy here.

(Analysts’ price target is $16.85)
0
DON'T BUY
Fastly Inc.

The last few quarters were not good. Maybe another company will take them over.

0
RISKY
Fastly Inc.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Momentum is strong, cash burn is slowing down, profitability HAS improved, and revenue growth remains resilient. In 2024-Q3, net retention rate went down to 114% compared to 116% in the 2024-Q2, but overall above 100% is still considered very solid. FSLY is expected to continue growing its topline around 15% over the next few years, and achive EBIT positive in FY2025. We think FSLY is the type of name that would perform well in this market environment. We would be conscious of position size and would consider it risky, but it may still have room to move higher. The balance sheet has improved and is now in good shape also. 
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0
HOLD
Fastly Inc.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

FSLY is up 96% YTD, and down 16% for 52-weeks.
Its losses, negative cash flow and loss of market share were concerns in the past 18 months.
It has about $150M net debt, sales of $500M expected this year and negative cash flow of $70M last year.
Sales are still growing, but at a slower pace.
The fundamentals are still not that great. But the last quarter was better than expected. 4Q sales and gross margins beat estimates as it continues to do a good job of expanding business within existing accounts, reflected in a 4Q dollar-based net retention rate of 123% vs. 122% in 3Q.
Guidance for 2023 revenue growth is 15.6% at the midpoint, mostly through selling more into existing accounts and to a lesser degree from share gains.
Security is the main growth engine, with Fastly looking to expand in this market by building on web-protection technology acquired through the Signal Sciences deal.
The company also has ambitious plans to expand its margins, with a goal to approach a 60% adjusted gross margin by year-end. It will do this largely through more efficient use of bandwidth, which represents one-third of its costs.
It is a very high beta name, and will need a strong tech market to continue to perform well.
Based on recent momentum we would be OK holding it for three to six months, in anticipation of peak US interest rates and a general market recovery. 
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0
SELL
Fastly Inc.
It had the best internet technology to host clients. But business faded and they suffered a bad outage. Shares are down 75% from the peak. Can it be taken over?
0
COMMENT
Fastly Inc.
Forget "risk-off" trading. Rather, IPOs of 2020 came in way too hot and got burned; Covid stocks like Docusign are hammered; Chinese stocks are a train wreck; cryptos hit; specific retailers hit by supply shortages; and then there are cloud-based stocks trading at sky-high price-to-sale multiples. He's a fan of this group, but at ridiculous valuations. The cloud isn't dead, though. Inflation erodes the future value of these stocks. Also, these stocks are speculative, which tend to trade as a group; investors sell first and ask questions later. A few bad earnings can crush the entire group, like Twilio and Docusign. Salesforce actually reported strong results though a weak forecast. As a group, the cloud stock were down 33% on average, in a bear market. WIX and Fastly down the most, but are both good companies offering fine services. The cloud stocks peaked a long time ago, like Jan-Feb, like Zoom. Only 13 out of 50 of these stocks trade at less than 100x earnings! Ones with a lower valuation have done better than the higher ones during this rout. Even now, there's still expensive on a valuation basis.
0
PAST TOP PICK
Fastly Inc.
(A Top Pick Aug 19/20, Down 43%) He got stopped out. They report tonight. He's pretty sure that revenue growth may be slowing. Look for net revenue retention, gross margins, and capex.
0
DON'T BUY
Fastly Inc.
They blew it. Outages in that industry are causing pullbacks [there was an outage in June caused by a software bug]. Doesn't like Fastly.
0
DON'T BUY
Fastly Inc.
He left it because they had too many issues over who their customers, and tonight they lost their CFO and reported a bad quarter. He expects more downgrades tomorrow. Wished he had better news.
0
BUY
Fastly Inc.

He likes it, but it's caught up in the Zoom-Peloton trade. It's a high-multiple stock, but he wouldn't sell it. It has room to run, maybe not all the way back to previous highs.

0
BUY
Fastly Inc.

An essential 5G play The next-gen content delivery network to help. The stock was cut in half last October when Trump cracked down on Fastly's biggest customer, TikTok. Things will likely change under Biden. Even without TikTok exposure, it's still worth buying. Time to take it out of the penalty box.

0
DON'T BUY
Fastly Inc.
A super expensive company. It had a decent, but not great quarter, and most of that rise was due to TikTok. FSLY is making a bottom. This is not a take-out candidate, no.
0
DON'T BUY
Fastly Inc.
A super expensive company. It had a decent, but not great quarter, and most of that rise was due to TikTok. FSLY is making a bottom. This is not a take-out candidate, no.
0
BUY
Fastly Inc.
A content delivery network. Is up 239% in the past 6 months, but lost 10% this week. It reported two weeks revenue weakness because their biggest customer is TikTok has been mired in Trump interference. This has been red hot during Covid.
0
RISKY
Fastly Inc.
Cloud space has really exploded. But look at ones that are already producing money. Over time, revenue growth will come to this name. Can own, but put a stop loss on it. Relatively oversold, could be a trade. Lot of risk in the name. For more timid investors try CLOU, a diverse mix of cloud companies.
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Fastly Inc.(FSLY-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for Fastly Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Fastly Inc.(FSLY-N) Frequently Asked Questions

What is Fastly Inc. stock symbol?

Fastly Inc. is a American stock, trading under the symbol FSLY-N on the New York Stock Exchange (FSLY). It is usually referred to as NYSE:FSLY or FSLY-N

Is Fastly Inc. a buy or a sell?

In the last year, 3 stock analysts published opinions about FSLY-N. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Fastly Inc..

Is Fastly Inc. a good investment or a top pick?

Fastly Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Fastly Inc..

Why is Fastly Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Fastly Inc. worth watching?

3 stock analysts on Stockchase covered Fastly Inc. In the last year. It is a trending stock that is worth watching.

What is Fastly Inc. stock price?

On 2024-06-21, Fastly Inc. (FSLY-N) stock closed at a price of $7.27.