Fastly Stock Soars: IBD Upgrades RS Rating to 87

Fastly (FSLY), a leading edge cloud platform firm, has caught the attention of investors with a significant upgrade to its IBD RS Rating. The stock's rating jumped from 76 to 87 in a single day, placing it among the top 64 stocks in the Computer Software-Enterprise industry group. This notable improvement suggests that Fastly's price action over the past 52 weeks has outperformed many of its peers.



Fastly's recent earnings report, which showed 0% EPS growth and 7% sales growth, did not directly contribute to its RS Rating improvement. Instead, the RS Rating, which measures a stock's price action over the last 52 weeks relative to other stocks, likely reflects broader market trends and investor sentiment. The jump in Fastly's RS Rating may be more indicative of the stock's recent rally, as it reclaimed its 200-day moving average, rather than a direct result of its earnings report.



Fastly's stock price movement around its 200-day moving average has significantly influenced its RS Rating. When Fastly's stock price recently reclaimed its 200-day moving average and began rallying higher, its RS Rating jumped from 76 to 87, meeting the criteria for market leadership (an RS Rating north of 80). This upward trend in Fastly's stock price has contributed to its improved RS Rating, suggesting that the stock is exhibiting strong relative strength compared to its peers.

Investors should monitor Fastly's progress and consider whether it can form and break out from a proper base before making a decision. While the tech stock is not near an ideal buy point right now, its recent rally and RS Rating upgrade indicate strong market leadership potential. Fastly's edge cloud platform, which enables real-time content delivery and application security, aligns well with the increasing demand for edge computing and content delivery services, fueled by the rise of streaming services, e-commerce, and IoT devices.

In conclusion, Fastly's recent IBD RS Rating upgrade to 87 signals a strong performance in the tech sector. The company's edge cloud platform, strategic partnerships, and focus on innovation have contributed to its growth. As investors continue to monitor the stock's progress, they should consider the potential for future growth and the broader industry trends that support Fastly's platform.