Fastly (NASDAQ:FSLY) Trading 13.8% Higher – What’s Next?

Fastly, Inc. (NASDAQ:FSLY)’s stock price rose 13.8% on Monday . The company traded as high as $24.61 and last traded at $26.13. 826,715 shares were traded during mid-day trading, a decline of 92% from the average daily volume of 9,846,641 shares. The stock had previously closed at $22.96.

Key Headlines Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Q2 earnings beat expectations. Fastly reported adjusted EPS of $0.15 versus consensus of $0.07, while revenue reached $183.32 million compared with estimates of $173.94 million. Revenue increased 23.3% year over year, supported by growth in networking, security and other services. Fastly earnings report
• Positive Sentiment: Margin and cash-flow expectations improved. CFO Rich Wong said Fastly’s software-centric platform relies primarily on CPUs rather than GPUs, potentially allowing the company to maintain strong gross margins and direct capital spending toward expansion instead of expensive infrastructure upgrades. Management’s outlook includes approximately $187 million of third-quarter revenue at the midpoint and improved full-year profitability guidance. Fastly gross margin commentary
• Positive Sentiment: Analyst and institutional sentiment is supportive. Several analysts raised price targets following the earnings release, while institutional investors have continued accumulating shares. Bullish technical momentum and strong remaining performance obligations are reinforcing expectations for further growth and a possible retest of the year’s highs. Fastly Q2 rally analysis
• Neutral Sentiment: Short-interest data provides no meaningful signal. Reported short interest was zero shares as of August 11, unchanged from the prior report, with a zero-day days-to-cover ratio. The figures appear potentially incomplete or unreliable, limiting their usefulness for evaluating trading pressure.
• Negative Sentiment: An insider sold shares. Director Richard Devon Daniels sold 11,080 shares for approximately $253,732, reducing his direct ownership by 17.79%. One insider sale does not establish a broader trend, but it may temper sentiment slightly after the sharp rally. SEC insider transaction filing
• Negative Sentiment: Valuation and execution risks are elevated. After rising roughly 174% this year, Fastly trades at a demanding multiple of projected earnings. Any slowdown in growth, weaker guidance or failure to deliver on the expected AI and margin opportunity could trigger a sharp pullback.

Analysts Set New Price Targets

FSLY has been the topic of a number of recent analyst reports. Citigroup upped their target price on Fastly from $13.00 to $25.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fastly in a report on Friday. KeyCorp upped their price target on shares of Fastly from $27.00 to $30.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Freedom Capital raised shares of Fastly to a “strong-buy” rating in a report on Thursday, July 16th. Finally, Canaccord Genuity Group initiated coverage on shares of Fastly in a research report on Friday, July 17th. They issued a “buy” rating and a $27.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $25.33.

Fastly Stock Up 3.7%

The company has a debt-to-equity ratio of 0.33, a quick ratio of 3.36 and a current ratio of 3.36. The firm has a market capitalization of $4.58 billion, a P/E ratio of -54.30 and a beta of 0.34. The stock has a fifty day moving average price of $19.97 and a two-hundred day moving average price of $20.36.

Fastly (NASDAQ:FSLY) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.08. The firm had revenue of $183.32 million for the quarter, compared to analyst estimates of $173.94 million. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. Fastly has set its FY 2026 guidance at 0.500-0.540 EPS and its Q3 2026 guidance at 0.110-0.130 EPS. Research analysts forecast that Fastly, Inc. will post -0.45 EPS for the current year.

Insiders Place Their Bets

In other Fastly news, CEO Charles Lacey Compton III sold 34,334 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $16.85, for a total value of $578,527.90. Following the completion of the sale, the chief executive officer directly owned 1,099,561 shares in the company, valued at $18,527,602.85. This represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Scott R. Lovett sold 41,716 shares of Fastly stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $17.77, for a total value of $741,293.32. Following the completion of the transaction, the insider owned 1,392,778 shares in the company, valued at $24,749,665.06. The trade was a 2.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 300,477 shares of company stock worth $5,387,212. Insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Fastly

Institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC grew its stake in Fastly by 39.8% in the first quarter. EverSource Wealth Advisors LLC now owns 2,204 shares of the company’s stock valued at $64,000 after acquiring an additional 627 shares during the period. PNC Financial Services Group Inc. raised its position in shares of Fastly by 84.6% during the first quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company’s stock worth $40,000 after purchasing an additional 633 shares during the period. Kestra Advisory Services LLC raised its holdings in Fastly by 8.4% during the 4th quarter. Kestra Advisory Services LLC now owns 11,970 shares of the company’s stock worth $122,000 after buying an additional 930 shares during the period. Parallax Volatility Advisers L.P. increased its holdings in Fastly by 13.8% during the 3rd quarter. Parallax Volatility Advisers L.P. now owns 12,095 shares of the company’s stock worth $103,000 after purchasing an additional 1,465 shares in the last quarter. Finally, Sound Income Strategies LLC acquired a new stake in Fastly in the 1st quarter valued at approximately $44,000. Institutional investors own 79.71% of the company’s stock.

About Fastly

Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly’s real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.

Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.