Fastly (FSLY) - Share Chat

A bump for this:

Who are they?
Fastly is a global content delivery network (CDN) that makes apps and the internet itself faster, more reliable and secure

Why bother?

  • In the cloud era, speed matters, and Fastly makes the sites of major brands deliver fast.
  • A developer-led team is highly engaged with co-founder Artur Bergman owning 12.3% of share outstanding
  • Even if current growth slows, the stock is tracking to at least double in the next three years.
  • Basic internet traffic connects a user to a user, but in a world that is increasingly global, the speed of delivery quickly becomes a problem. That’s why a content delivery network like Fastly is so valuable.

Market opportunity?

  • Fastly claims the market it addresses is $35 billion, nowadays it has shy of $200m revenue so plenty of growth left.

It’s stock is trading 48.4% below all time high, at the time of writing.

Please add Fastly a company building the future of the internet. They’ve experienced some explosive growth, and will continue to grow exponentially as the internet (web 3.0) is built out further.

Sector: Technology Services
Industry: Information Technology Services

Employees: 630

Fastly, Inc. provides real-time content delivery network services. It offers edge cloud platform, edge software development kit (SDK), content delivery and image optimization, video and streaming, cloud security, load balancing, and managed CDN. The company was founded by Artur Bergman, Simon Wistow, and Gil Penchina in March 2011 and is headquartered in San Francisco, CA.

Hey Bandele, welcome to the forum. :wave:

I’ve merged your request onto this thread. There is some good news about this stock, stay tuned over the next few days :wink:

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There’s speculation about Fastly working with Shopify.

Fastly said it expanded its relationship “with one of the world’s largest e-commerce platforms”

But even if not true, this is one of those businesses that benefited from Covid-19.

Confined to home due to shelter-in-place and work-from-home orders because of you-know-what, households have been forced to rely on the internet for just about everything – at least during peak lockdown. That has meant a bump in traffic for content delivery networks (CDNs), the companies responsible for making sure data travels across the internet and arrives at its intended destination.

With a negative EPS of -$0.58, a good bit of future growth is priced into the stock, which is trading at the all-time high, holding me back from buying.

Screenshot 2020-06-20 at 09.48.17

Anyone bullish or bearish on this stock?

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@Connor, I used to closely follow both NET and FASTLY, boy this one ran very well, may be because the quartely results call. The insiders are very optimistic about the future. I haven’t invested much in 20’s, but will invest a little bit if there is a pullback from 60’s.

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Same for me. I’d like to invest at a bit of a cheaper level, below $60, just to make sure I bag at least a semblance of a bargain. But my bargain hunt may be irrational. I need to understand the company and its future more.

Developer friends think highly of the company, that’s how my sleuthing started.

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The price plunged due to TikTok being Fastly’s biggest revenue driver, accounting for 12% of the group’s revenue.

I read up on the business, and I understand it better now. It’s edge computing - meaning they bring their servers closer to the location where it is needed, so the download speeds of websites and mobile apps of their customers improve.

Key business development highlights from the shareholder letter:

  • As education shifts to remote learning, a top U.S. university chose Fastly
    to help transition parts of their curriculum;
  • As brick-and-mortar shifts to ecommerce, a leading U.K. furniture
    retailer migrated to Fastly, implementing our WAF and Image
  • Optimization services on a short timeline and accelerating their
    transition to online retail. They are leveraging our edge application logic
    to easily accommodate their existing architecture and add A/B testing
    at the edge;
  • As wellness at home becomes more prominent, a mobile app rapidly
    adapted to unanticipated popularity by implementing Fastly’s offerings
    to ensure high-quality delivery to its customers while leveraging our
    partner integrations to reduce their cloud egress costs;
  • As streaming at home becomes the prevailing standard for the
    consumption of content, a leading European broadcast solutions
    provider selected Fastly’s Media Shield to power a new cloud service
    for global broadcasters seeking to leverage Apple’s Low Latency HTTP
    Live Streaming for OTT delivery of live TV; and
  • As online gaming becomes a popular choice for entertainment at home,
    a developer of massively multiplayer online (MMO) games chose Fastly
    to optimize and accelerate in-game assets and interactivity to over 75
    million of their browser and mobile casual games customers.

I wonder which UK furniture retailer that is.

Anyway I invested at the current price level. DYOR.

Dangerous game buying now I’d say, it’s still up 268% YTD and sentiment has definitely turned negative for the next quarter - they’ll have to prove they can replace the 12% of revenue that TikTok provided… it’ll more than likely mean they miss Q3 forecasts & an earnings downgrade will follow. 200 day moving average is back at $36, if it gets back there I’ll be buying…


Thank you for your thoughts.

Indeed Microsoft have the Azure platform, and I’d be surprised if they didn’t want to use that.

If that deal doesn’t materialise and someone else takes over TikTok I might regret not having bought this stock though!

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What’s a terrible day? 30% drop pre mkt

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Still an amazing long term play i think once the valuation makes sense

Any theories on what caused this to rise to $96.79 ( +17.01% ) today?

…not that I’m complaining…

Was just wondering the same thing!

Rumour is Cisco is looking at it as a possible acquisition target.


Ah I hope not because I’d like to see what Fastly does with the edge computing stuff they were talking about and what they achieve with the Wasmtime team and what they do with Signal Sciences Corporation.

The acquisition would make sense for Cisco, especially as it’s trying to shake off its image as a boring, legacy tech player. But, you’re right, it probably wouldn’t be a good deal for Fastly.

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A fun 24 hours for Fastly. Missed on revenue, slowing growth saw the share price dip heavily after hours, bouncing well so far.