Fastly (NASDAQ:FSLY) Shares Down 5.4% – Here’s What Happened

Fastly, Inc. (NASDAQ:FSLY)’s stock price was down 5.4% during trading on Tuesday . The stock traded as low as $21.47 and last traded at $21.55. Approximately 1,220,293 shares traded hands during trading, a decline of 87% from the average session volume of 9,441,716 shares. The stock had previously closed at $22.79.

Key Fastly News

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly’s record second-quarter results exceeded expectations, with revenue of $183.3 million versus the $173.9 million consensus estimate and adjusted EPS of $0.15 compared with forecasts of $0.07. The performance supports the view that Fastly’s edge cloud and AI offerings may be entering a growth inflection. Fastly: Record Q2 Confirms The Platform Inflection
• Positive Sentiment: Analyst targets remain generally supportive after the earnings report. Piper Sandler and RBC raised their price targets to $28, while the analyst consensus target is $25.33. However, the overall consensus rating remains “Hold,” limiting the potential bullish impact.
• Neutral Sentiment: Fastly was included among stocks with short-squeeze potential. Elevated short interest could amplify a rebound if buying momentum returns, but the article offers no new company-specific fundamental catalyst. 15 Stocks to Watch With Short Squeeze Potential
• Negative Sentiment: Schubert Jonckheer & Kolbe is investigating potential claims that Fastly made false or misleading statements about growth and macroeconomic pressures. The investigation follows a reported 31% share-price decline and adds legal and reputational risk, although it does not establish wrongdoing. Fastly Investor Alert
• Negative Sentiment: Insiders reported selling approximately 99,456 shares worth about $2.2 million, including more than 70,000 shares sold by CEO Charles Lacey Compton III. The transactions were largely made under pre-arranged Rule 10b5-1 plans, reducing their value as a discretionary bearish signal, but the concentration of sales may still weigh on sentiment.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on FSLY. Raymond James Financial reissued an “outperform” rating and issued a $29.00 price target on shares of Fastly in a research report on Thursday, August 6th. KeyCorp increased their price objective on shares of Fastly from $27.00 to $30.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Piper Sandler upped their target price on shares of Fastly from $27.00 to $28.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Evercore restated an “outperform” rating on shares of Fastly in a report on Thursday, August 6th. Finally, Royal Bank Of Canada upped their price target on Fastly from $22.00 to $28.00 and gave the company a “sector perform” rating in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $25.33.

Fastly Price Performance

The firm has a market capitalization of $3.25 billion, a PE ratio of -38.55 and a beta of 0.36. The company has a debt-to-equity ratio of 0.33, a current ratio of 3.36 and a quick ratio of 3.36. The firm has a 50-day simple moving average of $22.05 and a 200-day simple moving average of $22.07.

Fastly (NASDAQ:FSLY) last announced its earnings results on Wednesday, August 5th. The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.08. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. The company had revenue of $183.32 million during the quarter, compared to analyst estimates of $173.94 million. Fastly has set its FY 2026 guidance at 0.500-0.540 EPS and its Q3 2026 guidance at 0.110-0.130 EPS. As a group, equities analysts forecast that Fastly, Inc. will post -0.29 earnings per share for the current year.

Insider Activity

In other news, CFO Richard Wong sold 148,015 shares of the company’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $28.61, for a total value of $4,234,709.15. Following the completion of the transaction, the chief financial officer owned 1,091,286 shares of the company’s stock, valued at $31,221,692.46. This represents a 11.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Charles Lacey Compton III sold 55,579 shares of Fastly stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $21.39, for a total transaction of $1,188,834.81. Following the completion of the sale, the chief executive officer owned 914,235 shares in the company, valued at approximately $19,555,486.65. This represents a 5.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 523,341 shares of company stock worth $13,003,633 over the last ninety days. Company insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Fastly

Several institutional investors have recently bought and sold shares of FSLY. Vanguard Group Inc. grew its position in Fastly by 1.9% in the fourth quarter. Vanguard Group Inc. now owns 16,976,906 shares of the company’s stock worth $172,825,000 after acquiring an additional 310,234 shares in the last quarter. Morgan Stanley grew its holdings in Fastly by 14.7% during the 4th quarter. Morgan Stanley now owns 8,339,234 shares of the company’s stock valued at $84,893,000 after purchasing an additional 1,071,222 shares during the last quarter. First Trust Advisors LP boosted its position in shares of Fastly by 100.5% during the first quarter. First Trust Advisors LP now owns 7,031,952 shares of the company’s stock valued at $204,349,000 after buying an additional 3,524,763 shares during the period. Alyeska Investment Group L.P. raised its holdings in shares of Fastly by 2,795.2% in the fourth quarter. Alyeska Investment Group L.P. now owns 4,789,185 shares of the company’s stock worth $48,754,000 after buying an additional 4,623,767 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in Fastly by 2.9% in the third quarter. Dimensional Fund Advisors LP now owns 4,137,808 shares of the company’s stock worth $35,380,000 after purchasing an additional 117,213 shares during the period. Institutional investors own 79.71% of the company’s stock.

Fastly Company Profile

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.