Why Fastly Stock Is Dropping Today
Portfolio Pulse from Erica Kollmann
Fastly, Inc. (NYSE:FSLY) shares dropped after reporting mixed Q4 financial results and guidance. Earnings per share were at 1 cent, beating estimates, but quarterly sales of $137.78 million missed expectations. Analyst Jeff Van Rhee downgraded Fastly from Buy to Hold with a $20 price target. The stock's heavy trading volume was noted, and its FY23 revenue growth was 16.93%. Economic conditions and comparisons with peers were discussed, highlighting Fastly's underperformance in the Information Technology sector.
February 15, 2024 | 7:08 pm
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Fastly's mixed Q4 results and future guidance led to a stock price drop, with an analyst downgrade from Buy to Hold and a $20 price target.
Fastly's stock drop is directly related to its mixed Q4 financial results and the subsequent analyst downgrade. The missed sales expectations and the downgrade from Buy to Hold by analyst Jeff Van Rhee, coupled with a set $20 price target, likely contributed to negative investor sentiment. Additionally, the heavy trading volume indicates significant market reaction. The company's underperformance compared to peers and the broader IT sector context further justify the negative short-term impact.
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