FSLY - Why Shares of Fastly Stock Collapsed This Week
2024-02-16 12:41:36 ET
Shares of Fastly (NYSE: FSLY) were falling again this week, according to data from S&P Global Market Intelligence . The edge computing company posted weak growth and more losses in the fourth quarter of 2023, leading to the stock falling by as much as 36% for the week. Compared to its all-time high set in 2021, Fastly shares are down 88%, meaning for every $100 investors used to buy shares at the top, they would have just $12 left today.
In the fourth quarter, Fastly's revenue grew again to $138 million, up from $119 million in the same period in 2022. For the full year, revenue grew from $433 million to $506 million. Looking to 2024, Fastly is expecting revenue to be in the range of $580 million to $590 million.
So, what's the problem? Well, the company cannot seem to generate a profit. In 2022, it posted an operating loss of $246 million, then a loss of $198 million in 2023. It doesn't guide for generally accepted accounting principles (GAAP) operating income, but in 2024, it is expecting its adjusted operating loss to be $20 million to $14 million. Even using this fake profitability metric, Fastly can't get in the black and is likely set to lose more money for shareholders yet again in 2024.
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Why Shares of Fastly Stock Collapsed This Week