Overview
- Following Wednesday's earnings release, the stock fell about 35% to roughly $20 in Thursday trading.
- Fastly topped first‑quarter estimates with $173.02 million in revenue, up 20% year over year, and $0.13 in adjusted earnings per share.
- Management raised its outlook, guiding second‑quarter revenue to $170 million to $176 million and full‑year revenue to $710 million to $725 million with higher profit targets.
- Security revenue, a proxy for AI traffic on Fastly’s network, reached $38.8 million and grew 47% year over year, which only slightly beat forecasts and undercut lofty expectations.
- Analysts lowered expectations after the report, with Piper Sandler cutting its price target to $27 and warning growth may be peaking.