Key Takeaways EPS growth slips to 5% this year as the stock ramps to a 200X P/E. Large customers paying over $100K annually pushed above 3,500. Could the extreme valuation be anticipation of growth from Gen-AI video platforms?Cloudflare ((NET) is a $67 billion provider of global cloud services that comprise a suite of deeply integrated products, including website and application services solutions, developer-based solutions, other CDN (content delivery network) and consumer offerings.I want to share detai ...

Core Viewpoint - Fastly's shares have declined 26.4% year to date, underperforming the Zacks Internet Software industry's appreciation of 14.8% and the broader Zacks Computer & Technology sector's return of 5.7%, reflecting macroeconomic uncertainty and near-term softness in enterprise IT spending [1][2] Group 1: Company Performance - Fastly's strong partner ecosystem, expanding product portfolio, and consistent enterprise traction provide visibility into sustained execution, making the recent dip an attractive entry point for investors [2][17] - Fastly closed the first quarter of 2025 with 577 enterprise customers, contributing 93% of total revenue, and remaining performance obligations rose 33.5% year over year to $303 million [11][17] - The company expects revenues between $143 million and $147 million for the second quarter of 2025, indicating sequential growth from the March quarter, with a non-GAAP operating loss projected between $8 million and $4 million [15][17] Group 2: Product Innovations - Fastly continues to enhance its platform by introducing capabilities that address modern infrastructure challenges, evolving into a full-stack edge cloud platform [5][17] - New features include Client-Side Protection for browser-based security, expanded Bot Management capabilities, and HTTP Cache API support for programmatic cache control, improving developer experience and security [6][7][8] Group 3: Market Positioning - Fastly benefits from a rich partner base, including Microsoft, Alphabet, and Palo Alto Networks, enhancing its positioning in multi-cloud environments and security-led use cases [9][10] - Fastly shares are attractively valued, trading at a forward 12-month price-to-sales (P/S) of 1.63X, significantly lower than the industry's 5.76X [12][17] Group 4: Future Outlook - The company's stable second-quarter outlook and disciplined execution offer added visibility, with positive estimate trends supporting the case for accumulation [17][18]