Fastly (NASDAQ:FSLY) Shares Gap Down - Should You Sell?

Key Points

• Fastly shares opened at $17.20, down from the prior close of $21.03, and last traded near $16.02 after a sharp post-earnings decline.
• Q3 revenue of $190.2 million and adjusted EPS of $0.17 beat analyst estimates. Management also raised its 2026 outlook, forecasting $744 million–$748 million in revenue and $50 million–$60 million in free cash flow.
• Investors may be weighing expected Q4 growth deceleration and an upcoming sales-leadership transition. Analysts’ consensus rating is Hold, with an average price target of $26.67.

Shares of Fastly, Inc. (NASDAQ:FSLY - Get Free Report) gapped down before the market opened on Thursday. The stock had previously closed at $21.03, but opened at $17.20. Fastly shares last traded at $16.0220, with a volume of 2,282,978 shares changing hands.

Trending Headlines about Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly posted record Q3 revenue of $190.2 million, up 20.2% year over year, and non-GAAP earnings of $0.17 per share—above analyst estimates of $187.8 million in revenue and $0.12 per share. Fastly Q3 Earnings Beat Estimates, Revenues Increase Y/Y
• Positive Sentiment: Management raised its 2026 forecast, projecting revenue of $744 million–$748 million and free cash flow of $50 million–$60 million. Its Q4 revenue midpoint of $200 million also topped consensus expectations. Fastly 2026 revenue and free cash flow outlook
• Neutral Sentiment: Fastly cited security demand and customer expansion as growth drivers; its net revenue retention rate was 119%. Fastly Q3 2026 Earnings Call Highlights
• Negative Sentiment: Despite the earnings beat and higher annual guidance, shares fell after the results. Q4 growth is expected to decelerate, which may have tempered investor enthusiasm for the otherwise solid report. Fastly beats Q3 sales expectations but stock drops
• Negative Sentiment: President of Go To Market Scott Lovett plans to retire in 2027, and Fastly is beginning a search for a Chief Revenue Officer. The transition creates some uncertainty around sales leadership. Fastly announces go-to-market leadership transition

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Bank of America raised their price objective on shares of Fastly from $20.00 to $22.00 and gave the company an "underperform" rating in a research note on Wednesday, September 23rd. Raymond James Financial reiterated an "outperform" rating and issued a $24.00 target price on shares of Fastly in a research note on Thursday. KeyCorp reiterated an "overweight" rating and set a $30.00 price target on shares of Fastly in a report on Friday, September 18th. Weiss Ratings reissued a "sell (d-)" rating on shares of Fastly in a research report on Friday, August 7th. Finally, Piper Sandler restated a "neutral" rating and issued a $24.00 price objective (down from $28.00) on shares of Fastly in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $26.67.

Fastly Price Performance

The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.33. The stock has a market capitalization of $2.50 billion, a P/E ratio of -29.63 and a beta of 0.22. The stock has a 50 day moving average of $24.30 and a 200-day moving average of $21.45.

Fastly (NASDAQ:FSLY - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $0.17 earnings per share for the quarter, beating analysts' consensus estimates of $0.12 by $0.05. The company had revenue of $190.19 million during the quarter, compared to analyst estimates of $187.82 million. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. On average, equities research analysts anticipate that Fastly, Inc. will post -0.29 earnings per share for the current fiscal year.

Insider Buying and Selling at Fastly

In other news, insider Jeffrey Ford sold 45,832 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $24.65, for a total transaction of $1,129,758.80. Following the transaction, the insider directly owned 249,861 shares in the company, valued at approximately $6,159,073.65. This trade represents a 15.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Richard Wong sold 148,015 shares of Fastly stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $28.61, for a total transaction of $4,234,709.15. Following the transaction, the chief financial officer directly owned 1,091,286 shares in the company, valued at approximately $31,221,692.46. The trade was a 11.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 1,334,973 shares of company stock worth $35,706,621. 4.20% of the stock is currently owned by company insiders.

Institutional Trading of Fastly

Hedge funds have recently bought and sold shares of the stock. Kestra Advisory Services LLC boosted its stake in shares of Fastly by 83.4% in the third quarter. Kestra Advisory Services LLC now owns 27,858 shares of the company's stock worth $715,000 after buying an additional 12,669 shares during the last quarter. Greenleaf Trust purchased a new position in Fastly in the 3rd quarter valued at about $236,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Fastly in the third quarter worth approximately $2,149,000. D.A. Davidson & CO. purchased a new stake in shares of Fastly during the third quarter worth approximately $1,388,000. Finally, Capelight Capital Asset Management LP acquired a new position in Fastly in the 3rd quarter valued at $1,540,000. Hedge funds and other institutional investors own 79.71% of the company's stock.

About Fastly

Fastly, Inc is a technology company that provides an edge cloud platform designed to help businesses deliver, secure, and optimize digital applications and content. Its platform processes data and applications closer to end users, supporting faster performance, improved reliability, and greater control over internet-based services.

Fastly's products and services include content delivery, application programming interface (API) acceleration, edge computing, application and API security, bot management, distributed denial-of-service protection, and observability tools.

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