One Technology Stock to Punt On (NYSE: FSLY)
Fastly Inc. (NYSE: FSLY) operates a content delivery network (CDN), which is necessary for entities to provide faster and more reliable online content. Fastly’s strategy differs from traditional CDNs, which focused on locating servers in as many locations as possible to store copies of files that consumers most use. Fastly is far fewer sites than traditional CDNs, but it houses servers in the most network-dense data centers. Instead of simply storing static content, it allows its customers to program on its platform, enabling edge computing and better service of the more dynamic content that was traditionally not well served by CDNs. Fastly gears its service to the largest, most sophisticated enterprises rather than small companies and generated about two thirds of its revenue in the United States in 2020.
Highlights:
Strong Q4 2022 Financial Results: Fourth quarter revenue of $97.7 million, up 13% quarter-over-quarter, Fourth quarter revenue Dollar-Based Net Expansion Rate of 121%
Edge Deployment Option: February 8,2022 Fastly launched Industry’s First and Only Unified WAF. This marks a key milestone in integrating Signal Sciences’ award-winning trusted web application firewall (WAF) technology with Fastly’s edge cloud network. Fastly is executing on its strategy to provide security anywhere, making it an important choice for organizations needing a flexible WAF that protects business-critical apps and APIs in a breadth of deployment options.
Class Action Dismissal: Jan 24, 2021, Fastly announced a complete dismissal of a shareholder class action lawsuit and a related shareholder derivative lawsuit. In November 2021, the United States District Court for the Northern District of California dismissed the shareholder class action complaint, captioned in re Fastly Securities Litigation, in its entirety. Considering this strong ruling in Fastly’s favor, the plaintiff abandoned their claims entirely and voluntarily dismissed the case with prejudice, waiving their right to all appeals.
| Key Data | |
| Exchange | NYSE |
| Sector | Technology |
| Industry | Computer Software |
| 1 Year Target | $32.50 |
| Today’s High/Low | $20.02/$18.52 |
| Share Volume | 16,785,553 |
| Average Volume | 10,272,763 |
| Previous Close | $19.20 |
| 52 Week High/Low | $87.68/$19.13 |
Stock Price Projection: Based on analysts offering 12-month price targets for FSLY in the last 3 months. The average price target is $25.5 with a high estimate of $35 and a low estimate of $19.
Last 1 Year Chart
Risk Factor: It’s Fastly’s 2022 guidance that seems to be the biggest negative. The company is expecting revenue between $97 million and $100 million for the first quarter. It generated $97.7 million in the fourth quarter of 2021, so this is essentially calling for flat revenue growth. And for the full year, the guidance range of $400 million to $410 million doesn’t imply much growth in the second through fourth quarters either.
Stock Recommendation: Company has shown constant revenue growth & on technical grounds the stock Price is being anticipated to go higher. MarketFacts gives a “Speculative Buy” rating on the stock at the Price of $18.60 as of February 22nd, 2022.
