Fastly (NASDAQ:FSLY) Shares Gap Down – Here’s What Happened

Fastly, Inc. (NASDAQ:FSLY)’s stock price gapped down prior to trading on Thursday. The stock had previously closed at $21.03, but opened at $17.20. Fastly shares last traded at $16.0220, with a volume of 2,282,978 shares changing hands.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly posted record Q3 revenue of $190.2 million, up 20.2% year over year, and non-GAAP earnings of $0.17 per share—above analyst estimates of $187.8 million in revenue and $0.12 per share. Fastly Q3 Earnings Beat Estimates, Revenues Increase Y/Y
• Positive Sentiment: Management raised its 2026 forecast, projecting revenue of $744 million–$748 million and free cash flow of $50 million–$60 million. Its Q4 revenue midpoint of $200 million also topped consensus expectations. Fastly 2026 revenue and free cash flow outlook
• Neutral Sentiment: Fastly cited security demand and customer expansion as growth drivers; its net revenue retention rate was 119%. Fastly Q3 2026 Earnings Call Highlights
• Negative Sentiment: Despite the earnings beat and higher annual guidance, shares fell after the results. Q4 growth is expected to decelerate, which may have tempered investor enthusiasm for the otherwise solid report. Fastly beats Q3 sales expectations but stock drops
• Negative Sentiment: President of Go To Market Scott Lovett plans to retire in 2027, and Fastly is beginning a search for a Chief Revenue Officer. The transition creates some uncertainty around sales leadership. Fastly announces go-to-market leadership transition

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Freedom Capital raised Fastly to a “strong-buy” rating in a research note on Thursday, July 16th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fastly in a research note on Friday, August 7th. Freedom Broker boosted their target price on shares of Fastly from $32.00 to $37.00 and gave the company a “buy” rating in a report on Wednesday, September 23rd. Raymond James Financial reaffirmed an “outperform” rating and issued a $24.00 price target on shares of Fastly in a research note on Thursday. Finally, Oppenheimer upgraded Fastly from a “market perform” rating to an “outperform” rating and set a $35.00 price target for the company in a report on Friday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $26.67.

Fastly Stock Performance

The firm has a fifty day simple moving average of $24.30 and a 200-day simple moving average of $21.45. The company has a quick ratio of 3.36, a current ratio of 3.36 and a debt-to-equity ratio of 0.33. The company has a market cap of $2.50 billion, a PE ratio of -29.63 and a beta of 0.22.

Fastly (NASDAQ:FSLY) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.12 by $0.05. Fastly had a negative return on equity of 6.31% and a negative net margin of 11.80%. The firm had revenue of $190.19 million for the quarter, compared to analyst estimates of $187.82 million. On average, research analysts forecast that Fastly, Inc. will post -0.29 EPS for the current fiscal year.

Insider Activity at Fastly

In other news, CEO Charles Compton, III sold 8,941 shares of the business’s stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $24.98, for a total transaction of $223,346.18. Following the sale, the chief executive officer owned 822,559 shares of the company’s stock, valued at $20,547,523.82. The trade was a 1.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 37,039 shares of the firm’s stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $25.48, for a total transaction of $943,753.72. Following the transaction, the chief technology officer directly owned 1,024,239 shares of the company’s stock, valued at approximately $26,097,609.72. This trade represents a 3.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,334,973 shares of company stock valued at $35,706,621 over the last three months. Insiders own 4.20% of the company’s stock.

Institutional Trading of Fastly

A number of hedge funds have recently added to or reduced their stakes in FSLY. Signaturefd LLC boosted its holdings in Fastly by 98,700.0% in the third quarter. Signaturefd LLC now owns 988 shares of the company’s stock valued at $25,000 after acquiring an additional 987 shares during the last quarter. IFP Advisors Inc boosted its stake in shares of Fastly by 1,621.7% in the second quarter. IFP Advisors Inc now owns 1,429 shares of the company’s stock valued at $26,000 after purchasing an additional 1,346 shares during the period. GAMMA Investing LLC grew its holdings in Fastly by 38.4% during the 3rd quarter. GAMMA Investing LLC now owns 1,510 shares of the company’s stock valued at $39,000 after purchasing an additional 419 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in Fastly by 84.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company’s stock valued at $40,000 after purchasing an additional 633 shares in the last quarter. Finally, Sound Income Strategies LLC purchased a new stake in Fastly during the 1st quarter worth $44,000. 79.71% of the stock is owned by institutional investors and hedge funds.

About Fastly

Fastly, Inc is a technology company that provides an edge cloud platform designed to help businesses deliver, secure, and optimize digital applications and content. Its platform processes data and applications closer to end users, supporting faster performance, improved reliability, and greater control over internet-based services.

Fastly’s products and services include content delivery, application programming interface (API) acceleration, edge computing, application and API security, bot management, distributed denial-of-service protection, and observability tools.