Fastly (FSLY) Dips More Than Broader Markets: What You Should Know

Fastly (FSLY) closed at $16.43 in the latest trading session, marking a -1.91% move from the prior day. This move lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.97%.

Prior to today's trading, shares of the cloud software developer had gained 4.3% over the past month. This has outpaced the Computer and Technology sector's gain of 4.02% and lagged the S&P 500's gain of 6.23% in that time.

Wall Street will be looking for positivity from Fastly as it approaches its next earnings report date. This is expected to be May 3, 2023. In that report, analysts expect Fastly to post earnings of -$0.10 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $116.3 million, up 13.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.25 per share and revenue of $501.07 million. These totals would mark changes of +57.63% and +15.79%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Fastly. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Fastly currently has a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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