FSLY - Fastly: 3 Reasons Why I Am Buying The Drop (Rating Upgrade)
2024-02-15 11:50:19 ET
Summary
- Fastly, Inc. shares dropped by almost 30% after the company disappointed with its Q1 '24 outlook.
- Fastly made massive progress in FY 2023, however, as the company achieved positive adjusted EBITDA.
- Fastly's enterprise customer base is growing and free cash flow losses are narrowing.
- Shares are discounted by 30% compared to yesterday and have rebound potential as the market realizes it is overcorrecting.
Shares of Fastly, Inc. ( FSLY ) skidded 28% after the company known for its content delivery system reported Q4 '23 earnings on Wednesday. The cloud-edge computing company disappointed marginally with its growth outlook for the first fiscal quarter, but the market reaction, which reduced the company’s market cap by about one-third, seems a bit overdone. Fastly is still going to grow rapidly in FY 2024, and the company could soon achieve a major inflection point: free cash flow ("FCF") profitability. Enterprise customers are also growing, and the company achieved positive adjusted EBITDA in FY 2023. Shares are a buy on the drop and have revaluation potential!...
Fastly: 3 Reasons Why I Am Buying The Drop (Rating Upgrade)