Fastly Shares Surge 17.72% Ahead of Positive Earnings Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 47 minutes ago
0mins
Should l Buy FSLY?
Source: Yahoo Finance
- Significant Share Price Increase: Fastly's stock surged 17.72% on Tuesday to close at $32.36, as investors actively loaded up ahead of the earnings report, indicating strong market optimism regarding the company's performance.
- Revenue Growth Targets: The company anticipates a revenue increase of 16% to 20.4% in Q1, projecting between $168 million and $174 million, a notable rise from $144.5 million in the same period last year, reflecting robust business recovery.
- Improved Profitability Outlook: Fastly expects to swing to a non-GAAP net income per share of $0.07 to $0.10, compared to a net loss of $0.05 per share in the prior year, showcasing a significant enhancement in profitability.
- Anti-Piracy Collaboration: Fastly has partnered with Spain's Laliga to leverage AI in developing a real-time detection system for illegal streaming, aiming to combat piracy and enhance the company's position in digital content protection.
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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: 27.490
Low
10.00
Averages
11.70
High
14.00
Current: 27.490
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.
Fastly Shares Surge 17.72% Ahead of Positive Earnings Forecast
- Significant Share Price Increase: Fastly's stock surged 17.72% on Tuesday to close at $32.36, as investors actively loaded up ahead of the earnings report, indicating strong market optimism regarding the company's performance.
- Revenue Growth Targets: The company anticipates a revenue increase of 16% to 20.4% in Q1, projecting between $168 million and $174 million, a notable rise from $144.5 million in the same period last year, reflecting robust business recovery.
- Improved Profitability Outlook: Fastly expects to swing to a non-GAAP net income per share of $0.07 to $0.10, compared to a net loss of $0.05 per share in the prior year, showcasing a significant enhancement in profitability.
- Anti-Piracy Collaboration: Fastly has partnered with Spain's Laliga to leverage AI in developing a real-time detection system for illegal streaming, aiming to combat piracy and enhance the company's position in digital content protection.
See More
Compton Sells 29,533 Shares of Fastly Stock
- Transaction Overview: Compton sold 29,533 shares of Fastly stock over two days on April 16 and 17, 2026, for a total value of approximately $720,000 based on a weighted average price of $24.39 per share, indicating a partial shift in his holdings.
- Ownership Change: This sale represented 2.54% of Compton's direct holdings, leaving him with 1,133,895 shares post-transaction, which signifies that despite the sale, he retains significant control over the company.
- Nature of Sale: The transaction involved only direct holdings with no indirect dispositions or derivative securities, indicating that Compton's decision was primarily driven by tax considerations and a pre-set trading plan rather than market sentiment.
- Market Reaction: While Compton's sale might be interpreted as a signal, analysis suggests that its actual impact is limited, and investors should focus on more critical metrics such as Fastly's revenue growth and customer concentration risks rather than a single executive sale.
See More
Fastly CEO Sells Nearly 30,000 Shares of Stock
- Transaction Overview: Fastly CEO Charles Lacey Compton III sold 29,533 shares of common stock in multiple open-market transactions on April 16 and 17, 2026, for a total value of approximately $720,000, indicating a reduction in holdings at elevated price levels.
- Holding Change Analysis: Post-transaction, Compton retains 1,133,895 shares, and while the sale represents 2.54% of his direct holdings, his overall direct ownership has decreased by 17.67% since January 2026, reflecting ongoing engagement with the company's equity.
- Market Context Impact: As of April 17, 2026, Fastly shares delivered a total return of 353.82% over the past year, with the transaction executed at a weighted average price of $24.39, indicating the sale occurred amid significant price appreciation.
- Compliance of Trading Plan: The stock sale was conducted under a Rule 10b5-1 trading plan adopted on August 27, 2025, with a portion of the shares sold to cover tax obligations related to RSU vesting, demonstrating that this was a routine market transaction rather than a discretionary decision.
See More
Analysis of Cloud Computing ETF Performance
- SKYY Fund Performance: The First Trust Cloud Computing ETF (SKYY) is down 10% year-to-date but up 20% over the past year, currently priced around $118, indicating its stability in the cloud computing sector, particularly as AI capital expenditures attract infrastructure-heavy investors.
- WCLD Fund Volatility: The WisdomTree Cloud Computing Fund (WCLD) has declined 22% year-to-date and 12% over the trailing year, trading near $27, primarily impacted by AI disruption concerns, reflecting the vulnerability of pure-play software companies amid market fluctuations.
- CLOD Fund Positioning: The Themes Cloud Computing ETF (CLOD) launched as a lower-cost thematic fund, down 14% year-to-date but up 1% over the past year, currently priced around $28, providing a new option for cost-sensitive investors despite its shorter trading history.
- Market Trend Analysis: Enterprise digital transformation and AI-driven infrastructure spending are propelling cloud demand; however, profit pressures and interest rate sensitivity faced by pure software companies create divergent performance across different ETF types, necessitating investors to choose funds based on their risk tolerance.
See More
Jim Cramer Recommends Fastly Stock Amid Market Speculation
- Cramer’s Recommendation: During the lightning round, Jim Cramer highlighted Fastly's stock, which rose from $6 to $35, currently priced at $24, suggesting it is a buy, indicating a positive outlook on the stock.
- Market Performance Review: Since Cramer’s comments, Fastly’s stock has surged over 226%, reflecting market recognition of its potential and ongoing investor interest in the cloud computing sector.
- Competitor Analysis: While Cramer expresses a favorable view of Fastly, he shows a stronger preference for Cloudflare, noting its superior market performance and management, suggesting investors should monitor competitive dynamics closely.
- Investment Risk Advisory: Although Fastly is seen as a promising investment, analysts caution that certain AI stocks may offer greater upside potential and lower downside risk, advising investors to be prudent in their selections.
See More
Jim Cramer's Insights on Various Stocks
- Lumen Technologies Assessment: Cramer views Lumen Technologies as a decent investment but emphasizes the need for showcasing more interesting customers to enhance its appeal, which could potentially boost market confidence and stock performance.
- Venture Global Outlook: Initially skeptical about Venture Global, Cramer has shifted his stance as the stock price has declined, believing its positioning in the LNG sector will provide a competitive advantage in the changing market landscape.
- Fastly Investment Advice: Cramer reflects on Fastly's price trajectory, noting he recommended buying at $6 and still sees it as a buy at $24, indicating his ongoing optimism about cloud services, which may attract further investor interest.
- ARMOUR Residential REIT Concerns: Cramer expresses concerns over ARMOUR Residential REIT's high yield, suggesting that the high interest rate environment may not be beneficial, although he acknowledges the potential investment value, reflecting a complex market sentiment towards REITs.
See More
Fastly Shares Surge 17.72% Ahead of Positive Earnings Forecast
- Significant Share Price Increase: Fastly's stock surged 17.72% on Tuesday to close at $32.36, as investors actively loaded up ahead of the earnings report, indicating strong market optimism regarding the company's performance.
- Revenue Growth Targets: The company anticipates a revenue increase of 16% to 20.4% in Q1, projecting between $168 million and $174 million, a notable rise from $144.5 million in the same period last year, reflecting robust business recovery.
- Improved Profitability Outlook: Fastly expects to swing to a non-GAAP net income per share of $0.07 to $0.10, compared to a net loss of $0.05 per share in the prior year, showcasing a significant enhancement in profitability.
- Anti-Piracy Collaboration: Fastly has partnered with Spain's Laliga to leverage AI in developing a real-time detection system for illegal streaming, aiming to combat piracy and enhance the company's position in digital content protection.
See More
Compton Sells 29,533 Shares of Fastly Stock
- Transaction Overview: Compton sold 29,533 shares of Fastly stock over two days on April 16 and 17, 2026, for a total value of approximately $720,000 based on a weighted average price of $24.39 per share, indicating a partial shift in his holdings.
- Ownership Change: This sale represented 2.54% of Compton's direct holdings, leaving him with 1,133,895 shares post-transaction, which signifies that despite the sale, he retains significant control over the company.
- Nature of Sale: The transaction involved only direct holdings with no indirect dispositions or derivative securities, indicating that Compton's decision was primarily driven by tax considerations and a pre-set trading plan rather than market sentiment.
- Market Reaction: While Compton's sale might be interpreted as a signal, analysis suggests that its actual impact is limited, and investors should focus on more critical metrics such as Fastly's revenue growth and customer concentration risks rather than a single executive sale.
See More
Fastly CEO Sells Nearly 30,000 Shares of Stock
- Transaction Overview: Fastly CEO Charles Lacey Compton III sold 29,533 shares of common stock in multiple open-market transactions on April 16 and 17, 2026, for a total value of approximately $720,000, indicating a reduction in holdings at elevated price levels.
- Holding Change Analysis: Post-transaction, Compton retains 1,133,895 shares, and while the sale represents 2.54% of his direct holdings, his overall direct ownership has decreased by 17.67% since January 2026, reflecting ongoing engagement with the company's equity.
- Market Context Impact: As of April 17, 2026, Fastly shares delivered a total return of 353.82% over the past year, with the transaction executed at a weighted average price of $24.39, indicating the sale occurred amid significant price appreciation.
- Compliance of Trading Plan: The stock sale was conducted under a Rule 10b5-1 trading plan adopted on August 27, 2025, with a portion of the shares sold to cover tax obligations related to RSU vesting, demonstrating that this was a routine market transaction rather than a discretionary decision.
See More
Analysis of Cloud Computing ETF Performance
- SKYY Fund Performance: The First Trust Cloud Computing ETF (SKYY) is down 10% year-to-date but up 20% over the past year, currently priced around $118, indicating its stability in the cloud computing sector, particularly as AI capital expenditures attract infrastructure-heavy investors.
- WCLD Fund Volatility: The WisdomTree Cloud Computing Fund (WCLD) has declined 22% year-to-date and 12% over the trailing year, trading near $27, primarily impacted by AI disruption concerns, reflecting the vulnerability of pure-play software companies amid market fluctuations.
- CLOD Fund Positioning: The Themes Cloud Computing ETF (CLOD) launched as a lower-cost thematic fund, down 14% year-to-date but up 1% over the past year, currently priced around $28, providing a new option for cost-sensitive investors despite its shorter trading history.
- Market Trend Analysis: Enterprise digital transformation and AI-driven infrastructure spending are propelling cloud demand; however, profit pressures and interest rate sensitivity faced by pure software companies create divergent performance across different ETF types, necessitating investors to choose funds based on their risk tolerance.
See More
Jim Cramer Recommends Fastly Stock Amid Market Speculation
- Cramer’s Recommendation: During the lightning round, Jim Cramer highlighted Fastly's stock, which rose from $6 to $35, currently priced at $24, suggesting it is a buy, indicating a positive outlook on the stock.
- Market Performance Review: Since Cramer’s comments, Fastly’s stock has surged over 226%, reflecting market recognition of its potential and ongoing investor interest in the cloud computing sector.
- Competitor Analysis: While Cramer expresses a favorable view of Fastly, he shows a stronger preference for Cloudflare, noting its superior market performance and management, suggesting investors should monitor competitive dynamics closely.
- Investment Risk Advisory: Although Fastly is seen as a promising investment, analysts caution that certain AI stocks may offer greater upside potential and lower downside risk, advising investors to be prudent in their selections.
See More
Jim Cramer's Insights on Various Stocks
- Lumen Technologies Assessment: Cramer views Lumen Technologies as a decent investment but emphasizes the need for showcasing more interesting customers to enhance its appeal, which could potentially boost market confidence and stock performance.
- Venture Global Outlook: Initially skeptical about Venture Global, Cramer has shifted his stance as the stock price has declined, believing its positioning in the LNG sector will provide a competitive advantage in the changing market landscape.
- Fastly Investment Advice: Cramer reflects on Fastly's price trajectory, noting he recommended buying at $6 and still sees it as a buy at $24, indicating his ongoing optimism about cloud services, which may attract further investor interest.
- ARMOUR Residential REIT Concerns: Cramer expresses concerns over ARMOUR Residential REIT's high yield, suggesting that the high interest rate environment may not be beneficial, although he acknowledges the potential investment value, reflecting a complex market sentiment towards REITs.
See More
