Fastly - AI Stock Analysis

Analysis generated March 2, 2026

Fastly, Inc. (NYSE: FSLY) is a prominent player in the edge cloud industry, providing a platform designed to assist developers in securing and accelerating websites and applications. The company's services encompass content delivery networks (CDNs), internet security, and edge computing capabilities. Fastly aims to improve Internet performance by bringing servers closer to users, thereby reducing latency and enhancing user experience. Like many tech companies, Fastly's performance is closely tied to the expanding necessity for rapid and secure internet services.

Fundamental Analysis

Fastly demonstrated strong financial performance in the latest quarter, with a revenue of $173 million. This represents a 9.09% increase from the previous quarter and a significant 22.79% growth compared to the same quarter last year. These numbers highlight Fastly's solid upward momentum and the increasing demand for its services.

The net income for the last quarter stood at $16 million, which is an impressive 47.41% increase from the previous quarter and a noteworthy 52.85% year-over-year rise. Such growth is a positive indicator of the company's improved profitability and efficient cost management.

However, there is a potential red flag in the company's EBITDA, which was $15 million last quarter. This represents a staggering 2,942.34% decrease from the previous quarter and a 27.58% decrease compared to the same quarter last year. This trend may signify potential operational challenges or increased costs that could bear watching.

Another point of concern is recent insider trading activity. There have been instances of company insiders selling their stock, which can be a bearish signal, hinting at potential lack of confidence in the company's short-term performance.

Technical Analysis

Fastly's stock price currently stands at $20.54, showing an impressive 122.54% increase over the past month and a remarkable 214.07% surge over the past year. These gains indicate a strong bullish trend both in the short and long term.

The current Simple Moving Average (SMA10) is $18.28, slightly higher than the previous SMA10 of $18.11. This supports the indication of a potential upward trend in price movement. Furthermore, the Relative Strength Index (RSI) is at 66.7, which is in neutral territory but close to being overbought, suggesting that the stock is neither overbought nor oversold at the moment.

Alternative Data Analysis

Examining alternative data, Fastly appears to be taking measures to improve its margins or cut costs. The company has 2 open job positions on popular job boards, a 98% reduction in the last couple of months, which is not a great sign for a growth-oriented tech company.

Employee sentiment at Fastly is another area of concern, with only 36% of employees holding a positive outlook on the business. Despite this, the business outlook among employees has been trending upwards by 16% recently, indicating some improvement in internal sentiment.

On the customer acquisition front, Fastly's website has an estimated 300,000 visitors, up by 5% in the last couple of months, which is a bullish indicator suggesting growing interest and potential customer base expansion.

Customer engagement on social media has remained stagnant, with 29,000 Twitter followers and no change in the last couple of months. This stagnation indicates a possible lapse in engagement efforts or waning public interest.

According to AltIndex's AI score, which uses a comprehensive analysis of fundamental, technical, and alternative data, Fastly has a score of 45, which is considered a hold signal.

Conclusion and Recommendation

Fastly showcases mixed indicators in terms of fundamentals, technical trends, and alternative data. The company's impressive revenue and net income growth are promising, but the sharp decline in EBITDA and insider selling are concerns. The stock's price trend is bullish, but the RSI indicates that it might be nearing an overbought condition. The reduction in job openings and low employee sentiment paint a picture of potential internal cost-cutting measures, albeit with some recent improvements in sentiment.

Given these conflicting signals, a balanced approach may be advisable. Monitoring Fastly's performance over the coming quarters, particularly in terms of operational efficiency and employee sentiment, would be prudent. Based on the AltIndex AI score of 45, the stock appears to be a hold at this time.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.