
Fastly (FSLY) Stock Forecast & Price Target
Fastly (FSLY) Analyst Ratings
Bulls say
Fastly's business strategy, which focuses on housing servers in network-dense data centers rather than a high number of locations, positions it favorably for significant traffic growth, as evidenced by a nearly 25-30% year-over-year increase among its top 10 customers in Q3. The company's strong performance in live events and software downloads and solid security growth, which is expected to outpace overall market growth of 13-14% year-over-year, further reinforces its positive outlook. Additionally, guidance for a mid-point of approximately 48% incremental operating margins in 2025, alongside a 16% year-over-year increase in remaining performance obligations (RPO), indicates effective revenue diversification and margin improvement strategies.
Bears say
Fastly faces intense competition in the content delivery network (CDN) market, particularly from Akamai, which contributes to ongoing price compression historically seen in the sector. The company is currently unprofitable, with no expected turnaround towards profitability in the near term, raising concerns about its financial sustainability. Additionally, Fastly's revenue is concentrated among its top 10 customers, who account for over 30% of its total revenue, along with exposure to international risks, given that 25-30% of its revenue is derived from outside the United States.
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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