Fastly CTO sells shares amid stock surge, maintains confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 14 2026
0mins
Should l Buy FSLY?
Source: Fool
Fastly Inc's stock rose by 5.54% and reached a 5-day high, reflecting positive market sentiment.
CTO Artur Bergman sold 40,000 shares on February 23, 2026, for approximately $683,000, representing 0.66% of his total holdings. This sale was part of a pre-established Rule 10b5-1 trading plan, indicating strategic portfolio management rather than a negative outlook on Fastly's valuation. Despite a reported operating loss of $15.1 million, management remains optimistic about AI as a growth driver, with Q4 revenue showing a strong 23% year-over-year growth.
The market reacted positively to the news, viewing the share sale as a prudent investment strategy, and investors are advised to consider potential buying opportunities if the stock price dips.
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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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- 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.
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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.
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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.
- 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.
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- 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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- 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
Midday Stock Movements of Major Companies
- Planet Fitness Earnings Downgrade: Planet Fitness shares fell nearly 33% after the gym operator lowered its full-year earnings outlook, now projecting only a 4% year-over-year growth, down from a previous forecast of 9%-10%, which negatively impacts market confidence.
- Vital Farms Surprise Loss: Vital Farms, the egg producer, dropped 20% following a surprise loss of 3 cents per share in Q1, against analyst expectations of a 6-cent profit, and the company also cut its full-year earnings outlook, indicating increasing industry pressures.
- Datadog Exceeds Expectations: Datadog shares surged 28% after reporting Q1 earnings of 61 cents per share, surpassing the 51-cent consensus, with Q2 revenue guidance between $1.07 billion and $1.08 billion, reflecting strong market demand.
- AAON Revenue Surge: AAON, the air conditioning and heating equipment manufacturer, saw its shares soar 40% after Q1 earnings, EBITDA, and revenue all exceeded Wall Street estimates, raising its full-year revenue guidance by as much as 45%, showcasing robust growth potential.
See More
