News about Fastly

Fastly (FSLY) shares rose 8% to $24.18, far outpacing the First Trust Cloud Computing ETF (SKYY), up 2% at $167.36, and the SPDR S&P 500 ETF Trust (SPY), down 0.2% at $762.42. Nebius Group (NBIS) gained 1% to $161.31 and CoreWeave (CRWV) slipped 1% to $54.85, and both rent out GPU computing capacity for AI workloads, so their moves did not track Fastly. Fastly runs an edge cloud network that delivers and secures web content, and it recently expanded its partnership with Jio Platforms to power the upgraded JioCDN across India, though the article notes it is unclear whether that deal is linked to today's gain. The article cautions that a sharp one-session jump can fade quickly if the broader market keeps slipping, and says Fastly's next quarterly report should show whether the Jio partnership contributes.

Fastly (FSLY) stock returned 241.5% in the twelve months to October 9, 2026, far ahead of the S&P 500's 17.0%, as sales growth re-accelerated and losses narrowed. The first signal came on February 12, 2025, when management pitched its full product range, including security and bot protection; revenue from customers outside its ten largest grew 16%, even though total revenue rose just 2.0% in Q4 2024. Reports filed in May and August 2025 showed revenue growth of 8.2% and 12.3%, yet the operating loss was still 24.6% of revenue in Q2 2025. In Q2 2026, revenue rose 23% to $183.3 million, with the ten largest customers up 48% and other customers up 12%, though the article notes some growth came from episodic live sporting events. Management guided Q3 2026 revenue to $184–190 million, and results are due November 4, 2026.

Zacks highlights Fastly (FSLY, Zacks Rank #2 Buy), Alphabet and Meta Platforms. Fastly runs an edge cloud platform that helps customers build, secure and deliver applications closer to end users, and is expanding into application security and AI workloads. The article argues that autonomous AI agents, which constantly query models, benefit from Fastly's edge network and its tools for blocking unauthorized AI scrapers. A Twitter user ran 738 controlled tests and estimated that roughly a third of traffic from Meta's Muse agentic platform went through Fastly based on IP addresses, though Meta has not made this public. Zacks Consensus estimates project Fastly earnings growth of 71.43% next quarter and 307.69% for full-year 2026, and the company has beaten estimates by an average of 92.26% over the past four quarters. Oppenheimer upgraded the stock to outperform, citing early monetization of agentic AI traffic.