Fastly Inc (FSLY: NYE) has experienced a period of great turbulence in the past few months. After soaring to over $100 per share in early 2022, the stock has undergone a dramatic decline, currently trading around $14.50. This raises the question: should we buy now or wait?
Stock Target Advisor’s Take on Fastly:
Stock Target Advisor has assigned a Strong Sell rating to Fastly Inc’s stock. The projected price change over the next 12 months stands at 0%, with the company’s average analyst target price marked at $18.33. This comes with an average rating leaning towards Buy. By evaluating Fastly Inc’s own stock through an analysis of positive and negative signals, Stock Target Advisor has inferred a Bearish outlook.
The Software – Application sector has received a slightly Bearish rating, casting further uncertainty on Fastly Inc’s standing. It currently enjoys the coverage of 2 analysts, maintaining an average Buy rating and an average target price of $18.33.
What Challenges Does Fastly’s Landscape Present?
Here are some of the challenges Fastly is currently having:
- Macroeconomic headwinds: Rising interest rates and inflation have dampened investor sentiment towards growth stocks like FSLY.
- Increased competition: Cloud giants like Amazon Web Services (AWS) and Microsoft Azure are aggressively expanding their edge computing offerings, putting pressure on FSLY’s market share.
- Execution concerns: Some analysts point to missed earnings targets and customer churn as potential red flags regarding FSLY’s ability to execute its growth strategy.
Conclusion:
Investing in Fastly involves a calculated risk. The company faces challenges, but also possesses significant potential. Ultimately, the decision of whether to buy, hold, or sell depends on your individual risk tolerance and investment goals.
