Fastly (NASDAQ:FSLY) Shares Gap Up – Still a Buy?

Shares of Fastly, Inc. (NASDAQ:FSLY) gapped up before the market opened on Friday. The stock had previously closed at $26.68, but opened at $28.15. Fastly shares last traded at $25.2930, with a volume of 1,680,426 shares.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly outlined a 14%–21% long-term revenue growth target and highlighted new AI Firewall, AI Runtime Control and API security products. The offerings could expand Fastly’s addressable market by helping customers secure and manage AI applications and agentic traffic at the edge. Fastly AI Firewall article
• Positive Sentiment: Some analysts remain bullish. Freedom Broker raised its price target to $37 from $32 and maintained a buy rating, while heavy call-option activity—33,432 contracts, about 187% above typical volume—signals continued speculative interest. Freedom Broker forecast
• Neutral Sentiment: Analyst opinion is mixed. DA Davidson raised its target to $23 but kept a neutral rating, and BofA said Fastly’s shift from a CDN provider to a broader edge platform is promising while cautioning that the AI opportunity remains uncertain. BofA Fastly analysis
• Negative Sentiment: Investors are questioning the monetization of traffic generated by AI assistants, including Meta’s Muse. Citi reportedly remains neutral and views the recent AI-driven rally as excessive, increasing concern that Fastly’s growth targets may not quickly translate into profitable growth. Fastly AI traffic monetization article
• Negative Sentiment: Broader technology-sector pressure from rising Treasury yields and profit-taking after Investor Day have added to selling. The stock has already risen substantially this year, making it vulnerable to volatility when expectations are challenged.
• Negative Sentiment: CTO Artur Bergman sold an additional 49,146 shares for approximately $1.35 million, following a 27,900-share sale. Both transactions were made under a pre-arranged Rule 10b5-1 plan, but repeated insider selling may still weigh on sentiment. Fastly insider sale

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on FSLY. Freedom Capital raised shares of Fastly to a “strong-buy” rating in a research report on Thursday, July 16th. KeyCorp restated an “overweight” rating and set a $30.00 target price on shares of Fastly in a research report on Friday, September 18th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fastly in a research note on Friday, August 7th. Raymond James Financial reiterated an “outperform” rating on shares of Fastly in a report on Wednesday. Finally, Piper Sandler raised their price target on Fastly from $27.00 to $28.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Fastly has an average rating of “Hold” and a consensus price target of $26.73.

Fastly Stock Down 5.1%

The business’s fifty day moving average is $23.67 and its two-hundred day moving average is $22.65. The company has a market cap of $4.03 billion, a P/E ratio of -47.46 and a beta of 0.36. The company has a debt-to-equity ratio of 0.33, a quick ratio of 3.36 and a current ratio of 3.36.

Fastly (NASDAQ:FSLY) last issued its earnings results on Wednesday, August 5th. The company reported $0.15 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.08. The business had revenue of $183.32 million for the quarter, compared to the consensus estimate 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. Equities analysts predict that Fastly, Inc. will post -0.29 EPS for the current year.

Insider Transactions at Fastly

In related news, CEO Charles Compton, III sold 50,392 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $24.93, for a total value of $1,256,272.56. Following the transaction, the chief executive officer owned 851,949 shares of the company’s stock, valued at $21,239,088.57. This represents a 5.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Scott Lovett sold 41,815 shares of the firm’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $24.64, for a total value of $1,030,321.60. Following the transaction, the insider owned 1,281,583 shares in the company, valued at $31,578,205.12. The trade was a 3.16% 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. Insiders have sold a total of 826,730 shares of company stock worth $20,967,633 over the last three months. Company insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Fastly

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Integrated Wealth Concepts LLC purchased a new position in shares of Fastly during the second quarter valued at $48,000. IFP Advisors Inc lifted its stake in Fastly by 1,621.7% in the second quarter. IFP Advisors Inc now owns 1,429 shares of the company’s stock worth $26,000 after acquiring an additional 1,346 shares during the period. Spark Investment Management LLC purchased a new stake in Fastly in the second quarter worth about $340,000. Nykredit A S purchased a new stake in Fastly in the second quarter worth about $77,000. Finally, AlphaGrep UK Ltd bought a new position in Fastly during the 2nd quarter worth about $366,000. Institutional investors own 79.71% of the company’s stock.

About Fastly

Fastly, Inc is a cloud computing company that provides an edge cloud platform for delivering, securing and accelerating digital experiences. Its platform processes and serves applications, websites, APIs, streaming media and other internet content closer to end users, helping organizations improve performance, reliability and control.

Fastly’s product portfolio includes content delivery and application performance services, application programming interface (API) security, web application and bot protection, distributed denial-of-service (DDoS) mitigation, and edge compute capabilities.