Fastly (NYSE:FSLY) Shares Gap Down - Time to Sell?

Key Points

• Shares plunged and gapped down — FSLY opened at $22.80 after closing $31.57 and was trading around $19.56 (down ~38.2%) on very high volume as markets sold off following the report.
• Mixed fundamentals: Fastly posted a Q1 EPS beat, raised near‑term EPS guidance and saw security revenues grow ~47% Y/Y to ~$38.8M (≈22% of sales), but decelerating core delivery metrics triggered investor concern.
• Analyst and insider signals — several brokers cut price targets (RBC $18, Piper $27) and the average target is ~$19.25 with a consensus "Hold," while insiders have sold ~1.37M shares in the past three months.

Fastly, Inc. (NYSE:FSLY - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $31.57, but opened at $22.80. Fastly shares last traded at $19.5570, with a volume of 10,341,964 shares.

Fastly News Summary

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly reported a Q1 beat on EPS and slightly beat revenue expectations, and the company characterized the quarter as “record” for revenue, gross margin and RPO — signals of improving unit economics and momentum. Read More.
• Positive Sentiment: Management raised near-term guidance (Q2 EPS range and FY26 EPS range), which supports the view that profitability is improving. This was a key reason some investors were optimistic coming into the print. Read More.
• Positive Sentiment: Security product expansion is driving diversification: security revenues rose ~47% Y/Y to a record ~$38.8M and now make up ~22% of sales, an emerging growth pillar beyond core delivery. Read More.
• Neutral Sentiment: Earnings call transcript and investor presentation provide detail on product roadmap, RPO strength and margin trajectory — useful for investors digging into execution vs. guidance. Read More.
• Neutral Sentiment: Shares had rallied ahead of the print as investors positioned for improved profitability and AI/edge-infrastructure momentum; that prior run-up likely amplified volatility around the release. Read More.
• Negative Sentiment: Piper Sandler cut its price target (to $27 from $30) and flagged a core delivery slowdown — the bank said the quarter was more “in-line” than a large beat, stoking investor disappointment. Read More.
• Negative Sentiment: Despite the beat and raised guidance, markets sold FSLY heavily after-hours and into today — headlines note a sharp drop and high trading volume as investors punished the slower-than-expected core delivery metrics. Read More.
• Negative Sentiment: Commentary in media coverage emphasized the clash between improving profitability/security growth and decelerating legacy delivery trends — a mixed-story that can prolong volatility until growth consistency returns. Read More.

Analyst Ratings Changes

FSLY has been the topic of a number of analyst reports. Royal Bank Of Canada decreased their target price on shares of Fastly to $18.00 and set a "sector perform" rating on the stock in a research report on Thursday. Piper Sandler cut their price target on Fastly to $27.00 and set a "neutral" rating for the company in a research note on Thursday. William Blair raised Fastly from a "market perform" rating to an "outperform" rating in a report on Thursday, February 12th. Evercore began coverage on Fastly in a research report on Tuesday, April 14th. They issued an "outperform" rating and a $24.00 price target on the stock. Finally, Craig Hallum downgraded shares of Fastly from a "buy" rating to a "hold" rating and set a $24.00 price objective on the stock. in a research note on Tuesday, April 14th. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $19.25.

Fastly Trading Down 38.2%

The firm has a 50-day moving average of $25.48 and a two-hundred day moving average of $15.83. The firm has a market capitalization of $3.05 billion, a P/E ratio of -20.31 and a beta of 0.49. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.16.

Insider Activity

In other news, CTO Artur Bergman sold 265,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $22.79, for a total value of $6,039,350.00. Following the sale, the chief technology officer directly owned 1,604,901 shares in the company, valued at approximately $36,575,693.79. This trade represents a 14.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Charles Lacey Compton III sold 7,059 shares of Fastly stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $24.57, for a total transaction of $173,439.63. Following the sale, the chief executive officer directly owned 1,133,895 shares in the company, valued at $27,859,800.15. This trade represents a 0.62% 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. In the last three months, insiders have sold 1,374,553 shares of company stock worth $28,180,823. Corporate insiders own 6.70% of the company's stock.

Hedge Funds Weigh In On Fastly

Institutional investors and hedge funds have recently bought and sold shares of the company. Amundi boosted its stake in shares of Fastly by 11.3% during the first quarter. Amundi now owns 46,624 shares of the company's stock valued at $277,000 after purchasing an additional 4,724 shares in the last quarter. AQR Capital Management LLC acquired a new position in shares of Fastly in the first quarter valued at approximately $837,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Fastly by 1.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 466,042 shares of the company's stock valued at $2,950,000 after buying an additional 6,247 shares during the last quarter. Jones Financial Companies Lllp raised its holdings in Fastly by 963.6% in the 1st quarter. Jones Financial Companies Lllp now owns 60,838 shares of the company's stock valued at $385,000 after buying an additional 55,118 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in Fastly by 7.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,302,164 shares of the company's stock worth $14,573,000 after buying an additional 165,937 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.