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: 28.590
Low
10.00
Averages
11.70
High
14.00
Current: 28.590
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. The Company’s products and services includes Programmable Edge Platform, Network Services, Security, Compute, Observability, and Services. Its Network services include content delivery network, video / streaming, load balancing, image optimization, and origin connect. Its Security service includes Next-Gen WAF, bot management, DDoS protection, and others. The Company’s professional services include network services, managed security service, and response security service.
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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- Market Reaction: Despite the software sector losing hundreds of millions in market cap in 2026, investors have adopted a 'sell first, ask questions later' approach due to concerns over the decreasing reliance on traditional software subscriptions, highlighting the urgency of industry transformation.
- NVIDIA's Outlook: NVIDIA's CEO Jensen Huang emphasized that Agentic AI has reached an inflection point and is expected to represent a 'multi-trillion-dollar opportunity', indicating the company's strategic positioning in this emerging field could yield substantial market returns.
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- Prominent Innovation Strategy: The report highlights Fastly's emphasis on a global compute fabric rooted in Wasm security and interoperability, aiming to enhance its innovative capabilities in AI-assisted development and edge-first event streaming, thereby strengthening its market position.
- Performance and Security Combined: Fastly is recognized as a top choice for performance-critical, event-driven, and security-sensitive edge workloads, indicating its platform's significant advantages in meeting enterprises' demands for high performance and security.
- Global Market Influence: Fastly's edge cloud platform aids top global brands in enhancing online experiences, supporting enterprises in achieving continuous competitive advantages in software delivery on a global scale, further solidifying its leadership in the edge computing sector.
See More
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- Valuation Risks Intensify: Despite Palantir Technologies achieving a 70% year-over-year revenue increase to $1.4 billion in Q4 2025, its price-to-earnings ratio of 84.1 times raises concerns among analysts about a potential 55% downside risk as the stock price appears disconnected from fundamentals.
- Strong Performance vs. High Valuation: Palantir signed contracts worth approximately $4.3 billion in Q4, a 138% year-over-year increase, yet its high valuation continues to raise market concerns, with Jefferies analyst setting a price target of $70, indicating a cautious outlook for the future.
- Market Challenges for Fastly: Fastly reported a 15% year-over-year revenue growth to $624 million in fiscal 2025, achieving its first profitable year; however, with a price-to-earnings ratio exceeding 70 times and rising infrastructure costs, analysts remain cautious, with Citigroup setting a price target of $10, indicating a 62% downside potential.
- Impact of Market Volatility: Fastly's growth is heavily reliant on unpredictable customer traffic, and despite strong demand in Q4, the company warns that such demand may not be sustainable, with capital expenditures expected to reach 10% to 12% of revenue in 2026, adding to future uncertainties.
See More
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- Strong Contract Growth: Palantir signed contracts worth approximately $4.3 billion in Q4, a 138% year-over-year increase, indicating accelerated customer adoption of its AI platform, yet analysts remain concerned about its high valuation and potential for a correction.
- Execution Risks for Fastly: Fastly's median price target is $14, representing a 47% downside from its last closing price, with Citigroup's target at $10, suggesting a 62% decline; despite a 15% year-over-year revenue growth to $624 million in fiscal 2025 and achieving profitability for the first time, caution remains.
- High Capital Expenditure Pressure: Fastly anticipates capital expenditures to reach 10% to 12% of revenue in 2026, combined with a forward P/E ratio exceeding 70 and unpredictable customer traffic, poses significant risks to future growth, although its non-GAAP net income of $19.7 million indicates improving financial performance.
See More
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