FSLY - Fastly: Market's Concerns Were Valid
2024-05-03 01:05:44 ET
Summary
- Fastly's 1Q24 results and forward guidance have disappointed the market, leading to a 33% decline in the stock price.
- Market skepticism about Fastly's ability to address operational challenges is warranted, in my view.
- Despite Fastly trading at a significant discount, I would advise investors to steer clear until there is clear visibility of improvements.
- I maintain my rating as a "hold".
Investment Thesis
I covered Fastly, Inc. (FSLY) back in Mar. 2024 , and I laid out my investment thesis focusing on 3 areas:
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Operational Efficiency: Can Fastly mitigate its current operating losses while sustaining growth?
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Sales Execution: Is Fastly capable of addressing its sales execution challenges?
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Revenue Growth: Can Fastly reverse the trend of consecutive quarterly revenue declines and re-ignite its growth trajectory?