What's Going On With Fastly Stock After Earnings?
Portfolio Pulse from Erica Kollmann
Fastly, Inc. (NYSE:FSLY) shares dropped after issuing weak Q2 and FY guidance despite better-than-expected quarterly results. The company's Q2 and full-year revenue and earnings forecasts fell below analysts' expectations, leading to downgrades by B of A Securities and DA Davidson with lowered price targets. Fastly's year-to-date share performance has outperformed its historical averages, with a current RSI indicating neutral conditions.
May 02, 2024 | 4:05 pm
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NEGATIVE IMPACT
Fastly's weak Q2 and FY guidance, despite better-than-expected results, led to stock downgrades and lowered price targets by analysts, impacting its stock price negatively.
The negative impact on Fastly's stock price is directly related to the company's disappointing future earnings and revenue guidance, which fell below analyst expectations. This has led to downgrades by B of A Securities and DA Davidson, significantly lowering their price targets for Fastly, indicating a lack of confidence in the company's short-term growth prospects. Additionally, the company's year-to-date performance, despite outperforming historical averages, may not reassure investors given the current guidance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100