Fastly Inc (FSLY)

Fastly (FSLY) stock crashed 30.59% in its stock's price, triggered by bleak guidance for 2024 and insider selling, fueling a surge in bearish sentiment.

• Disappointing Financial Results: Following the release of its fourth-quarter report, Fastly reported non-GAAP earnings of $0.01 per share, surpassing analyst expectations of a loss of $0.02 per share. However, revenue fell short, reaching $137.77 million compared to the consensus estimate of approximately $140 million.
• Bleak Guidance: Fastly's guidance for the first quarter projected sales between $131 million and $135 million, below the anticipated decline already signaled by analysts. Additionally, the projected adjusted loss per share of $0.05 to $0.09 was substantially worse than the expected loss of $0.03 per share.
• Underwhelming Yearly Outlook: For the full year 2024, Fastly expects sales between $580 million and $590 million, below the average analyst expectation of approximately $587.1 million. Similarly, the projected earnings range fell short of Wall Street's anticipation of a breakeven performance.
• Insider Selling Adds to Concerns: Chief Architect Artur Bergman's sale of 21,875 shares worth around $551,000, disclosed in filings with the Securities and Exchange Commission, intensified concerns among investors. Despite the sale, Bergman retains a substantial ownership stake in Fastly.

Fastly Inc Stock (FSLY) dropped by 13.64% from $18.25 to $15.76 in the trading on Thursday October 5, 2023. The reasons why stock FSLY down today includes:

• Raymond James analyst's warning: Raymond James analyst Frank Louthan reiterated strong buy rating despite simultaneously warning that Fastly's Q3 revenue could be lower than expected when the company reports on Nov. 1, 2023.
• Insider selling: Chief architect Artur Bergman sold 20.8K class A common shares at $20.12/share for $419K.