Fastly has slowed its growth this year
Fastly, Inc. (NYSE: FSLY) is an American cloud computing service provider. Fastly’s edge cloud platform helps customers expand their core cloud infrastructure and includes Fastly’s content delivery network, image optimization, video and streaming, cloud security and load balancing services. Fastly’s customers include well-known companies such as Pinterest (PINS), The New York Times (NYT) and GitHub. FSLY last traded 1.1% to $ 60.40 this afternoon.
Fastly stock is down 23% over the past 12 months and is down 55% since its October high of $ 136.50. FSLY’s shares have also fallen roughly 30% since the start of the year and are currently looking at the 100-day moving average. However, Fastly stock is still up 53% since hitting its low of $ 39.47 on May 13.
If we look at the fundamentals, let’s start with the company’s earnings history. Fastly hits 50/50 if it has risen to the merit plate in the past 12 months. Starting with a profit hit for the second quarter of 2020, followed by a profit loss for the third quarter of 2020, followed by a profit hit for the fourth quarter of 2020 and finally missed expectations for the first quarter of 2021.
From a fundamental perspective, Fastly seems like a pretty normal growth company in the tech and cloud industries. FSLY has almost tripled its sales since 2017, but its growth rate slowed significantly in 2021. As a result, Fastly stock saw a huge sell-off that could potentially be a buying opportunity.
Overall, like any growth stock, FSLY stock comes with a fair amount of risk, but the upside has become much more attractive after the recent price decline. After all, FSLY has a decent balance sheet of $ 1.1 billion in cash and $ 1.02 billion in debt.
After all, the Schaeffer’s Volatility Index (SVI) of 59% is higher than just 8% of all other values in its year range. This implies that option players are currently pricing in relatively low volatility expectations.