Craig-Hallum downgrades Fastly to Hold as several factors weigh on forward year

As previously reported, Craig-Hallum downgraded Fastly (FSLY) to Hold from Buy with a $24 price target The firm sees several factors weighing on the forward year, including lapping easy compares, and elevated capex spend which will impact margins. Craig-Hallum also notes the release of Anthropic’s Mythos and implications for CDN players, as well as CDN traffic patterns and the impact of AI-driven traffic. Given the current valuation / run-in shares, less visibility to beats in 2026 as compared to the setup in 2025, and some potential impact from AI, the firm is moving to the sidelines on Fastly.