
Fastly (FSLY) Stock Forecast & Price Target
Fastly (FSLY) Analyst Ratings
Bulls say
Fastly's customer diversification strategy is yielding positive results, with revenue from non-top 10 customers growing 16% year-over-year, while the enterprise customer count increased by 20 sequentially, reflecting a strong demand among larger clients. Additionally, Fastly's packaged sales grew over 60% year-over-year in the fourth quarter and are projected to increase by 150% year-over-year in 2024, indicating robust sales momentum. Under new leadership, the company has seen a reacceleration in organic growth, improved margins, and enhanced competitiveness in the security sector, positioning it favorably in a challenging content delivery network market.
Bears say
Fastly is facing significant challenges as it ramps up sales and marketing expenditures alongside international network capacity investments, leading to anticipated lower margins and continued cash burn in 2025, raising concerns about customer concentration risk. The company's guidance for profitability in 2025 has fallen short of consensus expectations, contributing to a 21% decline in its stock after earnings were announced, even as revenue remains heavily reliant on a few key customers, notably TikTok. Additionally, Fastly's performance metrics, including a notable decline in net revenue retention to 102% and vulnerability to economic downturns due to its consumption-based model and ongoing lack of profitability, further exacerbate the negative outlook.
This aggregate rating is based on analysts' research of Fastly and is not a guaranteed prediction by Public.com or investment advice.
Fastly (FSLY) Analyst Forecast & Price Prediction
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