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Fastly shares slip after Q2 signals, as analysts raise price targets
Evercore ISI said live events like the FIFA World Cup added less than $5 million in tailwind, while Fastly’s guidance still supported a $32 price objective.
Fastly’s Q2 results and forward guidance prompted at least two Wall Street analysts to raise their price targets, even as some investors worried the quarter’s strength may reflect temporary live-events traffic rather than durable demand, Yahoo Finance reported. The report said Fastly shares were down roughly 35% versus their April high, and that the earnings release showed some softness in remaining performance obligations (RPOs) alongside pressure on compute revenue. Evercore ISI analyst Peter Levine downplayed concerns about an earnings-driven pullback, describing the move in the stock as an overreaction to routine operational noise. The outlet added that management attributed live-event tailwinds, including the FIFA World Cup, to a modest contribution of less than $5 million, and Evercore ISI reiterated an Outperform rating with a $32 price objective, implying about 45% upside from current levels. KeyBanc also pointed to the post-earnings dip as a buying opportunity, projecting the stock could reach $30 over the next 12 months. The firm cited management commentary that a stable pricing environment with mid-single-digit price cuts was offset by traffic growth in the low 20s, and it noted Fastly’s valuation at about 6x price-to-sales versus Cloudflare’s more than 49x.