Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fastly. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

In the latest trading session, Fastly (FSLY) closed at $12.60, marking a -1.33% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.65%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.96%.Prior to today's trading, shares of the cloud software developer had lost 21.85% over the past month. This has lagged the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 3.27% in that time.The investment community will be paying clos ...

Fastly (FSLY -3.65%) is having all sorts of trouble figuring out how to grow within an industry that's booming. The edge computing market is expected to expand by nearly 37% annually through 2030. Beyond content delivery and security, the artificial intelligence boom could turbocharge the industry as customers look to run AI models as close to users as possible.While there's certainly a viable growth story for Fastly, there's one good reason to run away from the stock.Living in the shadow of CloudflareThe 8 ...

Are you a little leery of jumping into any new stocks right now? If so, you're not alone. The market was looking overbought and overpriced a couple of months ago. Now it's showing signs of weakness, perhaps weighed down by steep valuations and profit-taking pressure. Even a few of the so-called "Magnificent Seven" stocks aren't looking so magnificent anymore.This isn't a reason to simply step away from the entire stock market though. Rather, it's an opportunity to ferret out new picks that may not have been ...

Cloudflare (NET -0.32%) and Fastly (FSLY -2.07%) are both cloud-based content delivery network (CDN) providers that accelerate the delivery of digital content for websites. They accomplish that by storing cached copies of the websites on "edge" servers that are located closer to their visitors than the original servers. They also shield those websites from bot-based attacks.Cloudflare and Fastly both went public in 2019. Cloudflare's stock subsequently rallied more than 550%, but Fastly trades about 10% bel ...

Summary of Fastly, Inc. Conference Call Company Overview - **Company**: Fastly, Inc. (NYSE: FSLY) - **Date**: March 6, 2024 - **Participants**: Todd Nightingale (CEO), Ron Kisling (CFO), Sanjit Singh (Morgan Stanley Analyst) Key Points Financial Performance - Fastly reported Q4 results that were slightly below expectations, leading to a nearly 40% drop in stock price [2][3] - Revenue miss was $1.5 million, which was considered relatively small but significant enough to impact market perception [4] - Gross margins improved significantly, reaching over 59% with a target of 60% in 2024, indicating a strong focus on profitability [4][8] - Positive cash flow and a positive EPS were noted, reflecting operational improvements [4] Strategic Initiatives - The company has undergone significant transformation, focusing on customer acquisition and growth, which may have been overshadowed by the revenue miss [4][6] - Fastly experienced the largest increase in enterprise customers since 2020, indicating a positive shift in customer acquisition strategy [6] - The strategy includes packaging and channel transformation to unify the platform and enhance customer experience [5][20] Executive Changes - Recent executive changes, including the appointment of Kip Compton as Chief Product Officer and Peter Alexander as Chief Marketing Officer, are expected to enhance the company's execution capabilities [14][17] - The focus on marketing efficiency and customer acquisition is seen as a key driver for growth [16] Market Position and Competitive Landscape - Fastly is positioning itself as a comprehensive edge platform, integrating content delivery, security, compute, and observability services [22][39] - The company is witnessing a market shift towards strategic partnerships rather than point solutions, which aligns with its platform unification strategy [22][39] - The exit of competitors from the market is expected to support pricing stability in the content delivery space [36] Security Portfolio - Fastly's security offerings, including DDoS prevention and bot mitigation, are seen as critical for future growth, with plans to disclose security revenue holistically [25][27] - The company aims to expand its security capabilities to meet customer expectations and increase wallet share [26][29] Edge Compute Opportunity - Fastly is heavily investing in edge compute, anticipating significant growth in this area over the next several years [44] - The focus on user experience and performance is driving demand for edge compute solutions, particularly among e-commerce players [41][42] Financial Outlook - Fastly aims to achieve $800 million to $900 million in revenue with gross margins of 65% and operating margins of 7% by 2026 [46] - The company is targeting a 430 basis point improvement in operating margins for 2024, driven by operational efficiencies and strategic investments [48][49] Partnerships and Competition - Fastly views major cloud providers as partners rather than competitors, leveraging a hybrid cloud architecture to enhance user experience [52] - The company is focused on platform convergence in the edge computing space, positioning itself to capitalize on market trends [53] Additional Insights - The transition to a unified platform is expected to lower customer acquisition friction and improve overall user experience [23] - Fastly's approach to packaging is designed to simplify customer onboarding and drive predictable revenue outcomes [34][35] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Fastly's focus on growth, operational efficiency, and market positioning.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fastly. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Fastly (FSLY 2.13%) has taken investors on a roller-coaster ride since its IPO in May 2019. The content delivery network (CDN) provider went public at $16 per share, and its stock skyrocketed to a record high of $128.83 on Oct. 13, 2020.But today, Fastly's stock trades at about $14. A $10,000 investment in its IPO would have blossomed to more than $80,500 before withering to less than $8,800 today. That's a dismal return compared with its larger CDN rival, Cloudflare (NET 0.96%), which went public at $15 in ...

Fastly, Inc. (NYSE:FSLY) Annual Raymond James Institutional Investors Conference March 4, 2024 10:35 AM ET Company Participants Vernon Essi - IR Ron Kisling - CFO Conference Call Participants Frank Louthan - Raymond James Frank Louthan Good morning. Thanks everybody for being here. My name is Q - Frank Louthan, I'm the senior analyst here covering Fastly. Very glad to have them back here again. At the conference we've got Ron Kisling, Chief Financial Officer; and Vernon Essi, who runs Investor Relations. So ...

Fastly, Inc. (NYSE:FSLY) Annual Raymond James Institutional Investors Conference March 4, 2024 10:35 AM ET Company Participants Vernon Essi - IR Ron Kisling - CFO Conference Call Participants Frank Louthan - Raymond James Frank Louthan Good morning. Thanks everybody for being here. My name is Q - Frank Louthan, I'm the senior analyst here covering Fastly. Very glad to have them back here again. At the conference we've got Ron Kisling, Chief Financial Officer; and Vernon Essi, who runs Investor Relations. So ...