FSLY - Fastly: +30% Upside Exists But So Do Significant Challenges
2024-04-03 06:10:42 ET
Summary
- Fastly's edge computing platform business had a weak year in 2023, overshadowed by its competitors, and guided for a softer FY24.
- Skewed customer mix and lagging product adoption are challenges Fastly needs to address to regain market share.
- The company's valuation suggests upside, but there are significant risks and pessimism surrounding the stock due to internal issues and competition.
Investment Thesis
Fastly ( FSLY ) has been in transition mode for more than a couple of years, which has dampened investor sentiment around the company. The company's edge computing platform business had a feeble year in 2023, as reflected by its full year FY23 report , overshadowed by its largest competitors in the same arena. To make matters worse, the company guided for a softer FY24 under consensus expectations ....
Fastly: +30% Upside Exists, But So Do Significant Challenges