William Blair analyst Jonathan Ho has maintained their neutral stance on FSLY stock, giving a Hold rating on July 30.
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Jonathan Ho has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing uncertainties at Fastly. The company reported a strong quarter with better-than-expected revenue and earnings, driven by successful new customer acquisition, favorable pricing, and improved market strategies. Additionally, Fastly’s security revenue showed significant growth, contributing a larger portion to the overall revenue, and the company raised its full-year guidance based on these strong results.
Despite these positive indicators, Jonathan Ho notes that Fastly is undergoing significant management changes, including a new CFO and shifts in other key positions. While these changes aim to enhance growth by focusing on customer needs and accelerating product development, it is still too early to determine their long-term impact. The company’s strategic adjustments and evolving leadership suggest potential for future growth, but the uncertainties surrounding these transitions justify a cautious Hold rating at this time.
In another report released on July 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.50 price target.
Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FSLY in relation to earlier this year.