Fastly Stock Skyrockets: Here’s Why Investors Are Piling In This Week
Fastly's stock just caught fire—and Wall Street's scrambling to grab a piece. The edge-computing darling's surge isn't just luck; it's a perfect storm of tech demand and market momentum.
Behind the rally: A cocktail of infrastructure upgrades and whisper numbers about cloud adoption. Meanwhile, shorts got steamrolled—again.
Let's be real: When Fastly zigs, half the analysts immediately 'revise' their price targets. Stay tuned before the next 'correction' magically appears.
Higher revenue, narrower loss
For its second quarter, Fastly notched record revenue of almost $149 million, bettering the same period of 2024 by 12%. The company also managed to narrow its non-GAAP (adjusted) net loss to $5 million ($0.03 per share) from slightly more than $8 million in the year-ago quarter.
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That meant a double beat for Fastly, since analysts tracking the stock were expecting worse for both metrics. Their consensus estimate for revenue was a bit over $145 million, and that for net loss was $0.05 per share.
In its earnings release, Fastly CEO Kip Compton said, "Our go-to-market transformation is delivering increased customer acquisition, expanded cross-sell opportunities, and market share growth."
What also gave the stock a lift was its raised guidance. For the entirety of 2025 Fastly is forecasting total revenue of $594 million to $602 million. Adjusted net loss should ring in at $0.04 to $0.10 per share. By comparison, the average pundit projection for the former is slightly below $591 million, and for the latter it's $0.10 per share.
On Thursday, the day the figures were published, Craig-Hallum analyst Jeff Van Rhee upgraded the stock to buy from his previous hold. His price target on the shares is $10 apiece.
New executive arriving
Separately, on Wednesday Fastly announced the appointment of a new CFO. The incoming chief is Richard Wong, who is replacing Ronald Kisling. The company wrote that Kisling is "leaving to pursue new opportunities," without elaboration. Wong formally takes up the position on Monday, Aug. 11.
