Fastly (NYSE:FSLY) Shares Gap Down – Should You Sell?

Fastly, Inc. (NYSE:FSLY)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $31.57, but opened at $22.80. Fastly shares last traded at $19.5570, with a volume of 10,341,964 shares changing hands.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly beat Q1 expectations, turning a $0.05 loss into $0.13 non-GAAP EPS while revenue rose 19.8%; management also raised full-year guidance, and security and compute revenue growth were key drivers. Fastly Announces Record First Quarter 2026 Financial Results
• Positive Sentiment: Fastly’s security revenue climbed 47% to a record $38.8 million, suggesting diversification beyond core delivery is gaining traction. Fastly’s Security Revenues Climb 47%: Is Diversification Paying Off?
• Positive Sentiment: Analysts turned more constructive after the report, with Raymond James upgrading Fastly to Outperform and Citi lifting its price target, citing an AI traffic inflection and stronger long-term potential. Raymond James Just Upgraded Fastly to Outperform: AI Traffic Inflection Powers $23 Price Target
• Neutral Sentiment: Some coverage emphasized that the company’s quarter was strong but that the stock reaction may reflect a market reassessment of growth quality rather than the headline earnings beat. FSLY Q1 Deep Dive: Security and Compute Growth Offset by Market Concerns on Outlook
• Negative Sentiment: Despite the beat, investors reacted to concerns that core delivery growth slowed and that growth may decelerate through the year, prompting several notes and price-target cuts after the earnings release. FSLY Q1 Earnings Beat Estimates on Security and Compute Growth
• Negative Sentiment: Piper Sandler cut its price target and described the quarter as more “in-line” than expected, adding to the selloff as traders worried the upside case was less compelling than the headline numbers suggested. Piper Sandler Cuts Fastly Price Target as Core Delivery Slowdown Crushes the Q1 Print

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Piper Sandler decreased their price target on shares of Fastly to $27.00 and set a “neutral” rating for the company in a report on Thursday. KeyCorp boosted their price target on shares of Fastly from $14.00 to $27.00 and gave the stock an “overweight” rating in a research report on Thursday. Evercore assumed coverage on shares of Fastly in a research report on Tuesday, April 14th. They set an “outperform” rating and a $24.00 price target on the stock. DA Davidson set a $13.00 target price on shares of Fastly in a report on Thursday, February 12th. Finally, Craig Hallum cut shares of Fastly from a “buy” rating to a “hold” rating and set a $24.00 target price on the stock. in a report on Tuesday, April 14th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $22.63.

Fastly Stock Performance

The company’s fifty day simple moving average is $25.51 and its two-hundred day simple moving average is $15.92. The stock has a market capitalization of $3.21 billion, a P/E ratio of -21.36 and a beta of 0.49. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.46 and a current ratio of 1.46.

Insiders Place Their Bets

In other Fastly news, CEO Charles Lacey Compton III sold 73,206 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $20.94, for a total transaction of $1,532,933.64. Following the transaction, the chief executive officer owned 875,831 shares in the company, valued at $18,339,901.14. This represents a 7.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Artur Bergman sold 275,234 shares of the stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $20.56, for a total transaction of $5,658,811.04. Following the transaction, the chief technology officer owned 1,909,901 shares in the company, valued at approximately $39,267,564.56. The trade was a 12.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,374,553 shares of company stock worth $28,180,823 in the last quarter. Corporate insiders own 6.70% of the company’s stock.

Institutional Trading of Fastly

Several large investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. boosted its position in shares of Fastly by 84.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company’s stock worth $40,000 after acquiring an additional 633 shares in the last quarter. Convergence Investment Partners LLC bought a new position in Fastly in the 1st quarter valued at approximately $1,951,000. Dimensional Fund Advisors LP lifted its stake in Fastly by 0.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,741,549 shares of the company’s stock valued at $79,620,000 after purchasing an additional 11,022 shares during the last quarter. KBC Group NV bought a new position in Fastly in the 1st quarter valued at approximately $127,000. Finally, Swiss National Bank lifted its stake in Fastly by 1.8% in the 1st quarter. Swiss National Bank now owns 280,900 shares of the company’s stock valued at $8,163,000 after purchasing an additional 4,900 shares during the last quarter. Institutional investors and hedge funds own 79.71% of the company’s stock.

Fastly Company Profile

Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly’s real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.

Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.