Fastly (NYSE:FSLY) Shares Gap Down – Time to Sell?

Shares of Fastly, Inc. (NYSE:FSLY) gapped down prior to trading on Thursday . The stock had previously closed at $26.03, but opened at $22.73. Fastly shares last traded at $23.5980, with a volume of 1,816,794 shares traded.

More Fastly News

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly reported record Q2 2026 revenue of $183.3 million, up 23.3% year over year. Security revenue grew 43%, while gross margin reached a record 65.8%, highlighting improving business mix and operating execution. Fastly Q2 2026 Earnings Call Highlights
• Positive Sentiment: Non-GAAP earnings were $0.15 per share, well above the $0.07 consensus estimate and a loss of $0.03 per share in the year-ago quarter. Revenue also exceeded expectations, producing earnings and revenue surprises of 114.29% and 5.34%, respectively. Fastly Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Fastly raised its outlook. Q3 revenue guidance of $184 million to $190 million and EPS guidance of $0.11 to $0.13 are above consensus estimates, while full-year 2026 EPS guidance is $0.50 to $0.54. Fastly Increases Its Full-Year Outlook
• Positive Sentiment: KeyCorp raised its price target from $27 to $30 and maintained an “overweight” rating, indicating continued confidence in Fastly’s growth and security opportunity. Benzinga
• Neutral Sentiment: Fastly’s partnership with Experian’s Agent Trust ecosystem supports its positioning in AI-agent verification, secure transactions and identity-based edge policies, but the longer-term revenue impact remains uncertain. Fastly and Experian Agent Trust
• Negative Sentiment: The market reaction suggests a “sell-the-news” dynamic: shares had already gained sharply, and valuation concerns leave less room for disappointment even after the earnings beat. Fastly Stock Sinks Despite Strong Q2 Results

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on FSLY shares. Piper Sandler restated a “neutral” rating on shares of Fastly in a research note on Thursday. Evercore reiterated an “outperform” rating on shares of Fastly in a research note on Thursday. Royal Bank Of Canada decreased their price objective on Fastly to $18.00 and set a “sector perform” rating for the company in a report on Thursday, May 7th. Freedom Capital upgraded shares of Fastly to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Canaccord Genuity Group assumed coverage on shares of Fastly in a research note on Friday, July 17th. They issued a “buy” rating and a $27.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $24.11.

Fastly Stock Down 10.8%

The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.16. The firm has a market cap of $3.63 billion, a PE ratio of -23.98 and a beta of 0.34. The stock has a fifty day simple moving average of $19.42 and a two-hundred day simple moving average of $19.90.

Insider Activity

In related news, CTO Artur Bergman sold 32,181 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $16.85, for a total transaction of $542,249.85. Following the completion of the transaction, the chief technology officer owned 2,086,529 shares of the company’s stock, valued at approximately $35,158,013.65. The trade was a 1.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Lacey Compton III sold 34,334 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $16.85, for a total transaction of $578,527.90. Following the sale, the chief executive officer directly owned 1,099,561 shares in the company, valued at $18,527,602.85. This trade represents a 3.03% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 274,529 shares of company stock worth $4,761,780. 4.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Fastly

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Alyeska Investment Group L.P. raised its position in Fastly by 2,795.2% during the fourth quarter. Alyeska Investment Group L.P. now owns 4,789,185 shares of the company’s stock valued at $48,754,000 after purchasing an additional 4,623,767 shares in the last quarter. First Trust Advisors LP boosted its stake in Fastly by 100.5% in the first quarter. First Trust Advisors LP now owns 7,031,952 shares of the company’s stock worth $204,349,000 after buying an additional 3,524,763 shares in the last quarter. Balyasny Asset Management L.P. raised its stake in shares of Fastly by 3,941.1% during the second quarter. Balyasny Asset Management L.P. now owns 1,329,006 shares of the company’s stock worth $9,383,000 after acquiring an additional 1,296,119 shares in the last quarter. T. Rowe Price Investment Management Inc. bought a new position in shares of Fastly during the 4th quarter valued at $11,657,000. Finally, Morgan Stanley lifted its stake in Fastly by 14.7% in the fourth quarter. Morgan Stanley now owns 8,339,234 shares of the company’s stock worth $84,893,000 after purchasing an additional 1,071,222 shares during the last quarter. 79.71% of the stock is currently owned by hedge funds and other institutional investors.

About Fastly

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.