FSLY - Why Fastly Is Down 18% This Week
2023-10-05 17:02:27 ET
Shares of Fastly (NYSE: FSLY) are down 18% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence , following a worrisome note from investment firm Raymond James .
The cloud computing services stock had already started this week by drifting lower along with the broader market. But its sell-off accelerated with a 13.6% decline on Thursday alone after Raymond James analyst Frank Louthan curiously reiterated their strong buy rating despite simultaneously warning that Fastly's third-quarter revenue could be lower than expected when the company reports on Nov. 1, 2023.
More specifically, Louthan lowered his Q3 revenue projection for the company to $124.2 million from $126.8 million previously, citing data from the firm's proprietary tools implying light internet traffic trends that will likely have a negative impact on Fastly's sales for the month. He also reduced his full-year revenue expectation by around $3 million to $506.5 million.
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Why Fastly Is Down 18% This Week