Fastly (FSLY) Receives Upgrade to Buy: Key Information You Need to Know
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 10 2025
0mins
Should l Buy FSLY?
Source: NASDAQ.COM
Fastly's Upgrade: Fastly (FSLY) has received a Zacks Rank #2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which could lead to increased stock prices.
Earnings Estimate Revisions: The Zacks rating system, which correlates earnings estimate revisions with stock price movements, suggests that Fastly's rising earnings estimates reflect an improvement in its underlying business.
Zacks Rank System: The Zacks Rank system classifies stocks based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating potential for market-beating returns.
Future Earnings Projections: For the fiscal year ending December 2025, Fastly is expected to earn -$0.01 per share, with analysts raising their estimates by 2.7% over the past three months, signaling investor confidence.
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Analyst Views on FSLY
Wall Street analysts forecast FSLY stock price to fall
10 Analyst Rating
2 Buy
7 Hold
1 Sell
Hold
Current: 17.680
Low
10.00
Averages
11.70
High
14.00
Current: 17.680
Low
10.00
Averages
11.70
High
14.00
About FSLY
Fastly, Inc. provides a programmable edge cloud platform that helps the world’s brands deliver online experiences through edge compute, delivery, security, and observability offerings, improving site performance, and enhancing security at a global scale. The Company enables developers to deliver secure Websites and apps. The edge cloud is a category of Infrastructure as a Service (IaaS) that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. Its network services include content delivery network, video / streaming, load balancing, image optimization, and origin connect. Its object storage is an Amazon S3-compatible large object storage solution that works seamlessly with both its CDN and Compute services. Its security service includes Next-Gen WAF, bot management, DDoS protection, and others. The Company’s professional services include network services, managed security services, and response security services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Value Appreciation: By the end of the quarter, the value of Fastly's position had risen to $6.19 million, reflecting the stock price increase and demonstrating significant gains for Carlson Investments amid market fluctuations.
- Strong Performance: Fastly reported record revenue of $173 million in Q1, representing a 20% year-over-year growth, while its cybersecurity services also saw a remarkable 47% increase, showcasing the company's robust performance in the rapidly evolving cloud market.
- Market Outlook: Although Fastly's stock price reached a 52-week high of $34.82 in Q2, Carlson Investments' strategy suggests confidence in the company's long-term growth potential, prompting investors to consider waiting for a price dip before entering the market.
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- Stock Reaction: Following the upgrade, Fastly's shares rose 3.9% in early trading, reflecting market optimism regarding the company's growth potential, particularly amid increasing demand for network capabilities and security products.
- Traffic Growth: Analysts noted that the rise in AI-related traffic is likely to continue benefiting Fastly's delivery networks, especially as they offer more advanced solutions compared to traditional DIY content delivery networks, enhancing competitive positioning.
- Price Target Set: A price target of $23 was established for Fastly, indicating a positive outlook on its future performance, with expectations that the company will capitalize on the growing demand for its network services.
See More
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- Surge in Trading Volume: The trading volume reached 47.1 million shares, approximately 208% above its three-month average of 15.3 million shares, indicating strong investor reactions to the company's outlook, even as the broader market remained subdued.
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See More
Fastly Shares Plunge 38.23% Despite Record Q1 Results
- Significant Stock Drop: Fastly's shares closed at $19.50 on Thursday, plummeting 38.23%, as concerns over slowing core networking services growth overshadowed the company's record Q1 results and raised 2026 guidance.
- Surge in Trading Volume: The trading volume reached 47.1 million shares, approximately 208% above the three-month average of 15.3 million shares, indicating a strong market reaction despite the poor stock performance.
- Sales Growth and Profitability: Fastly achieved a 20% sales growth in Q1 and exceeded Wall Street's adjusted EPS estimates; however, the stock declined due to market fears of decelerating future sales growth, even though its core Network Services segment's revenue growth was still double the market rate.
- Strong Performance in New Business Units: Fastly's Security and Compute units delivered revenue growth of 67% and 47%, respectively, indicating that despite the overall slowdown, these emerging segments now account for roughly one-fourth of the company's sales, showcasing potential for future growth.
See More
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- Q1 Financial Results: Fastly reported Q1 revenue of $173 million, a 20% increase year-over-year, which beat the $171.8 million estimate; however, it failed to meet market expectations for a larger beat, leading to a significant stock price drop.
- Full-Year Revenue Guidance: The company now forecasts full-year revenue between $710 million and $720 million, with the midpoint falling below the $716.53 million estimate, indicating potential growth slowdown that could impact investor confidence.
- Market Reaction: Fastly's shares tumbled nearly 40% by midday Thursday, and if this trend continues, it will mark the largest single-day percentage decline ever, reflecting investor disappointment over the core delivery business's underperformance.
- Retail Investor Sentiment: Despite the stock's decline, retail sentiment on Stocktwits has turned 'extremely bullish', with users viewing the current dip as a buying opportunity, indicating confidence in the company's long-term potential.
See More
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- Inflation Impact: The April PPI report revealed accelerating inflation, pushing the 10-year Treasury yield to 4.49%, effectively eliminating hopes for rate cuts in 2026, which raised the discount rate applied to long-duration growth earnings and compressed business valuations.
- Software Sector Pressure: With software prices rising year-over-year, enterprise software spending may face pullbacks; while current revenues are supported, enterprise customers might delay new deployments or consolidate seats to protect their margins, increasing uncertainty in the industry.
- Market Overreaction: Despite the overall decline in tech stocks, with Asure Software, Flywire, and Procore Technologies falling 3.4%, 3.2%, and 3.8% respectively, the market's overreaction may present buying opportunities for investors seeking high-quality stocks.
- Procore Technologies Performance: Procore Technologies has dropped 33.8% year-to-date, currently trading at $46.38, which is 41.7% below its 52-week high of $79.60, indicating market concerns about its future growth, prompting investors to carefully assess its investment value.
See More
Carlson Investments Acquires New Stake in Fastly
- New Investment Position: Carlson Investments initiated a new position in Fastly by acquiring 213,025 shares in Q1 2026, with an estimated transaction value of $3.5 million, indicating a bullish outlook on Fastly's growth potential.
- Value Appreciation: By the end of the quarter, the value of Fastly's position had risen to $6.19 million, reflecting the stock price increase and demonstrating significant gains for Carlson Investments amid market fluctuations.
- Strong Performance: Fastly reported record revenue of $173 million in Q1, representing a 20% year-over-year growth, while its cybersecurity services also saw a remarkable 47% increase, showcasing the company's robust performance in the rapidly evolving cloud market.
- Market Outlook: Although Fastly's stock price reached a 52-week high of $34.82 in Q2, Carlson Investments' strategy suggests confidence in the company's long-term growth potential, prompting investors to consider waiting for a price dip before entering the market.
See More
Fastly Upgraded to Outperform by Raymond James Following Q1 Results
- Upgrade Announcement: Raymond James upgraded Fastly (FSLY) from Market Perform to Outperform, indicating analyst confidence in the company's operational turnaround, which is expected to drive further stock price appreciation.
- Stock Reaction: Following the upgrade, Fastly's shares rose 3.9% in early trading, reflecting market optimism regarding the company's growth potential, particularly amid increasing demand for network capabilities and security products.
- Traffic Growth: Analysts noted that the rise in AI-related traffic is likely to continue benefiting Fastly's delivery networks, especially as they offer more advanced solutions compared to traditional DIY content delivery networks, enhancing competitive positioning.
- Price Target Set: A price target of $23 was established for Fastly, indicating a positive outlook on its future performance, with expectations that the company will capitalize on the growing demand for its network services.
See More
Fastly Shares Plunge 38.23% Despite Record Q1 Results
- Significant Stock Decline: Fastly's stock plummeted 38.23% to $19.50 at Thursday's close, despite reporting record Q1 results and raising its 2026 sales guidance, as concerns about slowing core networking services growth persisted.
- Surge in Trading Volume: The trading volume reached 47.1 million shares, approximately 208% above its three-month average of 15.3 million shares, indicating strong investor reactions to the company's outlook, even as the broader market remained subdued.
- Sales Growth Slowdown: Although Fastly achieved a 20% sales increase in Q1 and exceeded Wall Street's adjusted EPS estimates, the market reacted negatively to the core networking services segment's only 11% revenue growth, leading to a sharp decline in stock price.
- Future Investment Outlook: Management anticipates that infrastructure capital expenditures will more than double as a percentage of revenue by 2026, and while the security and compute segments saw revenue growth of 67% and 47% respectively, market confidence in future growth remains low.
See More
Fastly Shares Plunge 38.23% Despite Record Q1 Results
- Significant Stock Drop: Fastly's shares closed at $19.50 on Thursday, plummeting 38.23%, as concerns over slowing core networking services growth overshadowed the company's record Q1 results and raised 2026 guidance.
- Surge in Trading Volume: The trading volume reached 47.1 million shares, approximately 208% above the three-month average of 15.3 million shares, indicating a strong market reaction despite the poor stock performance.
- Sales Growth and Profitability: Fastly achieved a 20% sales growth in Q1 and exceeded Wall Street's adjusted EPS estimates; however, the stock declined due to market fears of decelerating future sales growth, even though its core Network Services segment's revenue growth was still double the market rate.
- Strong Performance in New Business Units: Fastly's Security and Compute units delivered revenue growth of 67% and 47%, respectively, indicating that despite the overall slowdown, these emerging segments now account for roughly one-fourth of the company's sales, showcasing potential for future growth.
See More
Fastly's Q1 Results Fall Short of Expectations, Shares Plummet
- Q1 Financial Results: Fastly reported Q1 revenue of $173 million, a 20% increase year-over-year, which beat the $171.8 million estimate; however, it failed to meet market expectations for a larger beat, leading to a significant stock price drop.
- Full-Year Revenue Guidance: The company now forecasts full-year revenue between $710 million and $720 million, with the midpoint falling below the $716.53 million estimate, indicating potential growth slowdown that could impact investor confidence.
- Market Reaction: Fastly's shares tumbled nearly 40% by midday Thursday, and if this trend continues, it will mark the largest single-day percentage decline ever, reflecting investor disappointment over the core delivery business's underperformance.
- Retail Investor Sentiment: Despite the stock's decline, retail sentiment on Stocktwits has turned 'extremely bullish', with users viewing the current dip as a buying opportunity, indicating confidence in the company's long-term potential.
See More
