S&P 500 Continues to Flirt with 7,000 Level
S&P 500 has continued to flirt with the 7,000 level but, similar to yesterday's price action, any early-session gains are surrendered into the close. Wednesday saw a replay of the familiar theme, with Energy and Materials the top two sectors on the day and year-to-date by far, while Tech continues to be dragged down by losses in the Software space. Compounding today's caution was the delayed employment return, which came in slightly hotter than expected - albeit with most of the job gains coming in Healthcare and Education. The market still repriced March FOMC probabilities from a 20% chance of a cut to a roughly 5% chance as while traders sold Treasuries across the curve. The reaction in fixed income also weighed on the rate-sensitive Real Estate sector.In the opening hour of the evening session, sentiment remains mixed - S&P 500 e-minis are flat and Nasdaq 100 is down 0.2%. WTI Crude Oil remains bid just shy of the $65 per barrel mark, while precious metals are tracking sideways - Gold just below $5,090 and Silver above $83 per ounce.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Fastlyup 31.7%Cognexup 23.6%McGraw Hillup 17.9%Curtiss-Wright Corporationup 6.9%HubSpotup 0.9%DOWN AFTER EARNINGS -Rollinsdown 13.2%QuantumScapedown 11.2%Inspire Medical Systemsdown 8.8%Cisco Systemsdown 7.5%Tyler Technologiesdown 7.1%Paycomdown 6.6%Nabors Industriesdown 6.3%AppLovindown 6.0%McDonald'sdown 0.1%
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- Strong Earnings Report: Fastly reported quarterly revenue of $172.6 million, a 23% year-over-year increase, with earnings per share approximately double analyst estimates, marking a significant inflection point that bolstered market confidence.
- AI-Driven Demand Growth: CEO Kip Compton highlighted that the rise of agentic AI is reshaping internet traffic patterns, driving stronger demand for Fastly's platform, particularly as security revenue grew by 32%, further solidifying the company's competitive position.
- Optimistic Future Outlook: Fastly issued 2026 revenue guidance of $700 million to $720 million, exceeding Wall Street expectations, indicating strong growth potential in managing AI-driven traffic.
- Short-Term Volatility vs. Long-Term Trend: While the stock is currently trading 2.7% and 4.1% below its 20-day and 100-day simple moving averages, respectively, it has increased by 118.60% over the past 12 months, reflecting a relatively strong long-term performance.
- Significant Revenue Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, with adjusted EPS at $0.12, indicating that operating leverage is beginning to take effect after years of inconsistent performance, suggesting potential for improved profitability.
- AI Cloud Partnership: The company announced a surprise AI cloud partnership, shifting market perception of Fastly's role in digital infrastructure, as it is now viewed as a beneficiary of AI-driven edge traffic growth, which has strategic implications for its future.
- Optimistic 2026 Outlook: Management's revenue guidance for 2026 ranges from $700 million to $720 million, indicating that recent gains are likely sustainable, which further boosts investor confidence and drives stock price increases.
- Surge in Trading Volume: Fastly's trading volume reached 55 million shares, approximately 710% above its three-month average of 6.8 million shares, reflecting strong investor interest and positive reactions to the company's outlook.
- Significant Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, with adjusted EPS at $0.12, indicating that operating leverage is beginning to take effect after years of inconsistent performance, enhancing profitability.
- Stock Surge: The stock price rose 13.84% on Friday to close at $18.26, with trading volume hitting 55 million shares, approximately 710% above its three-month average, reflecting strong investor confidence in the company's growth potential.
- Optimistic 2026 Outlook: Management projects 2026 revenue between $700 million and $720 million, suggesting that recent growth momentum is likely sustainable, particularly driven by AI cloud partnerships, which are shifting market perceptions of Fastly's role in digital infrastructure.
- AI Traffic Driven: With increasing demand for AI-related traffic, Fastly is being viewed as a beneficiary of edge traffic growth, a shift that could support ongoing revenue and margin improvements, ensuring the company maintains a competitive edge in a rapidly evolving market.
Share Sale Announcement: The Perartur Bergman Revocable Trust plans to sell 220,980 shares of its common stock in Fastly (FSLY.US) on February 13, with an estimated market value of around $3.54 million.
Reduction in Holdings: The trust has decreased its shareholding in Fastly by 1.17 million shares since November 17, 2025, which has a total value of approximately $15.67 million.
- Strong Earnings Report: Fastly reported quarterly revenue of $172.6 million, reflecting a 23% year-over-year increase, with earnings per share exceeding analyst expectations, marking a significant milestone in the company's transformation towards AI, which has attracted considerable investor interest.
- Security Revenue Growth: The company's security revenue grew by 32%, driven by products designed to tackle challenges posed by AI traffic, further solidifying Fastly's market position and demonstrating its adaptability in emerging technology sectors.
- Technical Strength Signals: Fastly's stock is currently trading 68.9% above its 20-day simple moving average and 65.2% above its 100-day moving average, indicating robust short-term and medium-term strength, although the RSI at 81.56 suggests overbought conditions, warranting caution for potential pullbacks.
- Analyst Cautious Outlook: Despite a momentum score of 96.83 indicating strong market performance, analysts maintain a Hold rating with an average price target of $10.64, reflecting a cautious stance on future growth prospects.

- Market Overview: Stock futures are trading mostly lower as investors express caution.
- Investor Concerns: There is heightened anxiety regarding artificial intelligence developments.
- Upcoming Data: Investors are awaiting the consumer-price inflation report for January.
- Market Sentiment: Overall market sentiment remains tense as economic indicators are closely monitored.








