
Fastly (FSLY) Stock Forecast & Price Target
Fastly (FSLY) Analyst Ratings
Bulls say
Fastly demonstrated a robust financial performance, surpassing revenue expectations by approximately 5% in its latest quarter, marking its largest earnings beat in over two years. The company's revenue re-accelerated at 8% year-over-year, driven by a significant 17% growth in revenue from non-top 10 customers and an overall improvement in pricing dynamics due to reduced competition in the content delivery network sector. Additionally, the company's remaining performance obligations (RPO) surged 33% year-over-year, alongside an increase of 18 sequential enterprise customers, indicating strong growth potential and confidence in future earnings.
Bears say
Fastly's financial outlook appears negative due to several fundamental issues, including a notable decline in Net Revenue Retention (NRR), which dropped 2 points to 100%, signaling potential volatility in revenue growth stemming from reliance on large clients like TikTok. The company's consumption-based revenue model combined with high exposure to startups and a lack of profitability significantly increases its vulnerability during economic downturns, suggesting challenges in capitalizing on growth opportunities in security and service diversification. Additionally, the risk of customer concentration poses a significant threat, with approximately 35% of revenue generated from its top ten customers, heightening the potential impact of any fluctuations in customer engagement or market demand.
This aggregate rating is based on analysts' research of Fastly and is not a guaranteed prediction by Public.com or investment advice.
Fastly (FSLY) Analyst Forecast & Price Prediction
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