FSLY - Why Fastly Stock Was Flailing on Friday
2024-05-03 19:28:55 ET
Hardly for the first time in recent days, edge computing company Fastly (NYSE: FSLY) was socked with an analyst price target cut on Friday. Although this probably didn't come as an overwhelming surprise to market participants, they nevertheless didn't like it. The stock traded down by 3.5% during a session in which the S&P 500 index was well in positive territory with a 1.3% increase.
Friday's cutter was Morgan Stanley prognosticator Sanjit Singh, who reduced his Fastly price target by a fairly steep 40%. He now feels it is worth $12 per share, where previously he estimated its fair value at $20. He maintained his equalweight -- hold, in other words -- buy on the stock as he did so.
Singh's move came two days after the company posted its first-quarter results . While it managed to grow its revenue by 14% year over year and narrow its net loss -- topping the average analyst estimates for both -- investors found its guidance wanting. The company's full-year forecast ranges for both revenue and per-share earnings came in below the consensus pundit projections.
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Why Fastly Stock Was Flailing on Friday