Fastly Stock Just Surged Above Key Support Levels. Is It Too Late to Buy FSLY?

Core Insights - Fastly (FSLY) achieved its first profitable year, with Q4 earnings per share (EPS) exceeding Street estimates by 100% [1] - The stock price has more than tripled since April of the previous year, attracting significant retail and institutional interest [2] - Analysts believe there is still an opportunity to invest in Fastly, particularly as it is seen as an undervalued player in the artificial intelligence (AI) sector [3] Financial Performance - Fastly's Q4 gross margin increased by 650 basis points year-over-year to 64% [4] - The company is projected to generate $710 million in revenue this year, significantly above Street estimates [6] Valuation and Market Position - Fastly's current price-to-sales (P/S) multiple is 2.28x, making it more attractive compared to competitors like Cloudflare [5] - Analysts had a consensus "Hold" rating prior to the earnings release, but upward revisions to estimates are expected following the strong performance [7][8] Future Outlook - The company's guidance for 2026 indicates that recent Q4 performance is not a one-time event, but rather a result of its commitment to enhancing operating leverage [4] - The growth in agentic AI is anticipated to drive increased traffic to Fastly's content delivery networks, contributing to revenue growth [3]