Is fastly good stock for buy?
7/27/2025 05:17pm
**Fastly (FSLY) is not a good stock for buying at this moment.** Here's why:
1. **Financial Performance**: Fastly's financials show a decline. The company reported a net loss of $39.15 million and a diluted EPS of -$0.27 for the latest quarter. The net income growth rate is 9.85%, but the diluted EPS growth rate is 15.62%, indicating a decrease in earnings per share despite a revenue increase.
|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|FSLY|FSLY.N|Fastly|2024 Q2|1.32371E8|-4.3729E7|-0.32|169|
|FSLY|FSLY.N|Fastly|2024 Q3|1.37206E8|-3.8016E7|-0.27|169|
|FSLY|FSLY.N|Fastly|2024 Q4|1.40579E8|-3.2886E7|-0.23|169|
|FSLY|FSLY.N|Fastly|2025 Q1|1.44474E8|-3.9148E7|-0.27|169|
2. **Revenue Growth**: While Fastly has seen an 8.2% year-over-year revenue growth, this is coupled with a 3-year revenue CAGR of 12.09%, which suggests a deceleration in revenue growth.
|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|FSLY|FSLY.N|Fastly|2024 Q2|-308.52952167414054|7.76676897525869|-300|169|
|FSLY|FSLY.N|Fastly|2024 Q3|30.003130120969967|7.346498091005821|35.71428571428571|169|
|FSLY|FSLY.N|Fastly|2024 Q4|-40.62259471478662|2.0337211581033117|-27.77777777777779|169|
|FSLY|FSLY.N|Fastly|2025 Q1|9.853317060814701|8.204014379868184|15.624999999999996|169|
3. **Market Sentiment**: The stock has been under pressure, with a significant drop in February 2024, which was attributed to disappointing guidance and insider selling. More recently, the stock has fallen further, dropping from the Russell 3000 Growth Index and the Russell 2500 Growth Index, which could be indicative of market skepticism about the company's future prospects.
4. **Technical Indicators**: The stock's technical indicators are not favorable. The MACD is 0.09, the RSI is 56.84, and the KDJ is 86.93, which suggest that the stock is neither overbought nor oversold, but the BOLL is at 7.02, indicating a potential for price volatility.
|code|Ticker|Name|Date|Boll|RSI|KDJ|MACD|market_code|
|---|---|---|---|---|---|---|---|---|
|FSLY|FSLY.N|Fastly|20250724|7.0085|63.9003|96.2023|0.0977|169|
5. **Analyst Price Target**: The average analyst price target is $7.50, with a low of $6 and a high of $8, which is below the current trading price, suggesting a lack of confidence among analysts in the stock's immediate future performance.
6. **Dividend and Insider Activity**: Fastly does not pay dividends, which may be a concern for income-focused investors. Additionally, insider activity has been negative, with the CEO selling shares in July 2025, which could be interpreted as a lack of confidence in the company's future prospects.
In conclusion, the combination of poor financial performance, lack of revenue growth acceleration, negative market sentiment, and unfavorable technical and analyst indicators suggest that Fastly is not a good stock for buying at this time. Investors should exercise caution and consider these factors before making investment decisions.