FSLY Should I Buy
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Fastly Inc (FSLY) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown some positive growth in revenue and gross margin, the recent price action, negative market sentiment, and lack of strong proprietary trading signals suggest it is better to wait for a clearer entry point or further improvements in fundamentals.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200) and a positive MACD histogram, indicating an upward trend. However, the RSI is neutral at 65.225, and the stock has faced significant regular market decline (-4.03%). Key support is at 23.078, and resistance is at 29.916.
Fastly has been recognized as a Leader in Edge Development Platforms by Forrester, highlighting its innovative strategies.
The company reported strong revenue growth of 22.79% YoY in Q4
Analysts note the company is benefiting from agentic AI traffic, which is still in its early stages.
Analysts express concerns over high valuations and execution risks, predicting potential downside for the stock.
Net income dropped significantly (-52.85% YoY), and EPS declined (-56.52% YoY), reflecting ongoing profitability challenges.
The broader market sentiment is negative (S&P 500 down 1.79%), and the stock experienced a sharp regular market decline (-4.03%).
In Q4 2025, revenue increased by 22.79% YoY to $172.61M, and gross margin improved by 14.96% YoY to 61.39%. However, net income dropped by 52.85% YoY to -$15.51M, and EPS declined by 56.52% YoY to -0.1, indicating profitability challenges.
Analysts have mixed views. RBC Capital raised the price target to $20 from $12, citing improving execution, while others like Citi and Piper Sandler maintain Neutral ratings with modest price target increases. William Blair upgraded the stock to Outperform, highlighting its potential in agentic AI traffic and large customer deals. However, concerns about valuation and execution risks persist.
