Fastly Inc (FSLY: NYE) has experienced a period of great turbulence in the past few months. After soaring to over $100 per share in early 2022, the stock has undergone a dramatic decline, currently trading around $14.50. This raises the question: should we buy now or wait?
Stock Target Advisor’s Take on Fastly:
Stock Target Advisor has assigned a Strong Sell rating to Fastly Inc’s stock. The projected price change over the next 12 months stands at 0%, with the company’s average analyst target price marked at $18.33. This comes with an average rating leaning towards Buy. By evaluating Fastly Inc’s own stock through an analysis of positive and negative signals, Stock Target Advisor has inferred a Bearish outlook.
The Software – Application sector has received a slightly Bearish rating, casting further uncertainty on Fastly Inc’s standing. It currently enjoys the coverage of 2 analysts, maintaining an average Buy rating and an average target price of $18.33.
What Challenges Does Fastly’s Landscape Present?
Here are some of the challenges Fastly is currently having:
- Macroeconomic headwinds: Rising interest rates and inflation have dampened investor sentiment towards growth stocks like FSLY.
- Increased competition: Cloud giants like Amazon Web Services (AWS) and Microsoft Azure are aggressively expanding their edge computing offerings, putting pressure on FSLY’s market share.
- Execution concerns: Some analysts point to missed earnings targets and customer churn as potential red flags regarding FSLY’s ability to execute its growth strategy.
Conclusion:
Investing in Fastly involves a calculated risk. The company faces challenges, but also possesses significant potential. Ultimately, the decision of whether to buy, hold, or sell depends on your individual risk tolerance and investment goals.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
