Fastly stock has declined 26.4% YTD due to macroeconomic uncertainty, but remains a strong investment.

From Nasdaq: 2025-07-03 12:24:00

Fastly (FSLY) shares have declined 26.4% year to date, underperforming the Internet Software industry and the Computer & Technology sector due to macroeconomic uncertainty and soft enterprise IT spending. Despite the dip, the company’s strategic execution makes it an attractive investment opportunity with a differentiated edge cloud platform.

Fastly has expanded its platform with new capabilities in security, observability, and developer control. Recent innovations like Client-Side Protection and Bot Management enhancements have driven increased adoption, with packaging deals doubling year over year and new logo wins rising over 80% in the reported quarter.

The company’s strong partner base, including Microsoft, Alphabet, and Palo Alto Networks, has contributed to its growth. Fastly’s expanding customer base and rising performance obligations signal increasing adoption of its product portfolio, positioning it for future success in the edge cloud market.

Fastly stock is trading at an attractive valuation compared to the industry, presenting a compelling opportunity for investors. The company’s stable second-quarter outlook, product innovations, and partnership ecosystem support a positive growth trajectory, making it a strong investment choice with a Zacks Rank #2 (Buy) and a Growth Score of A.

For investors seeking potential growth opportunities, Fastly offers a promising investment with its differentiated edge cloud platform, expanding product portfolio, and strong partner ecosystem. With a stable outlook and positive estimate trends, the stock’s attractive valuation makes it a compelling choice for accumulation.

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Read more at Nasdaq: FSLY Stock Plunges 26.4% YTD: Is This the Right Time to Buy the Dip?