Fastly(US:FSLY) GlobeNewswire News Roomยท2024-07-02 19:43Core Viewpoint - A class action has been filed against Fastly, Inc. by shareholders who purchased securities between February 15, 2024, and May 1, 2024, following disappointing financial results and a significant stock price drop [1][2]. Financial Performance - Fastly reported Q1 2024 revenue of $133.52 million, missing consensus estimates by $0.35 million [2]. - The company lowered its FY 2024 revenue guidance to a range of $555 million to $565 million, down from the previous guidance of $580 million to $590 million, and below consensus estimates of $584.62 million [2]. Stock Market Reaction - Following the announcement of disappointing results and lowered guidance, Bank of America downgraded Fastly's stock from "Buy" to "Underperform" and cut the price target from $18 to $8 per share [2]. - Fastly's stock price fell by $4.14, or 32.02%, closing at $8.79 per share on May 2, 2024 [2]. Allegations - The complaint alleges that Fastly failed to disclose a significant deceleration in growth among its largest customers and the loss of market share gained during the 2023 CDN consolidation trend [7]. - It is claimed that these undisclosed issues would materially negatively impact the company's revenue growth and that Fastly was unlikely to meet its previously issued revenue guidance for FY 2024 [7]. Legal Proceedings - Shareholders interested in participating as lead plaintiffs in the class action must file motions by July 23, 2024 [5]. - A lead plaintiff acts on behalf of other class members in directing the litigation, but participation is not required for recovery eligibility [5].