Why Fastly Stock Jumped Today
Key Points
Fastly improves the performance of its customers' websites and edge networks.
Demand for Fastly's AI security offerings is also set to rise.
- 10 stocks we like better than Fastly ›
Shares of Fastly (NASDAQ: FSLY) spiked on Wednesday following the cloud platform's investor day event.
Image source: Getty Images.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Living on the edge
Fastly's platform combines a content delivery network, cybersecurity, and edge computing to help its customers deliver faster and more reliable online experiences, while also reducing costs.
By bringing delivery, security, and compute together in one unified platform, Fastly is positioning itself to capture a larger share of the artificial intelligence (AI)-driven shift to edge networks. Fastly says AI traffic is growing 6.5 times faster than human traffic on its platform.
Fastly's platform-based approach also makes it easier to cross-sell its offerings. Thirty percent of its large customers have adopted four or more of its products.
These and other encouraging trends gave Fastly's leadership the confidence to issue ambitious 2029 financial targets. Management expects:
- Revenue of $1.1 billion to $1.3 billion, signifying annualized growth of 14% to 21% from 2026 to 2029
- Gross margin of 67% to 71%
- Operating margin of 20% to 22%
- Free cash flow yield of 12% to 15%
Multiple growth catalysts
AI security is likely to be a significant driver of these gains. On Monday, Fastly launched its AI Firewall and AI Runtime Control capabilities to give its customers the means to better protect and monitor their AI systems.
Fastly also stands to benefit from the surging popularity of Meta Platforms' new personal AI agent, Muse. Fastly reportedly handles a sizable portion of Muse's internet traffic.
Should you buy stock in Fastly right now?
Before you buy stock in Fastly, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fastly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $389,154!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,303!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 24, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fastly and Meta Platforms. The Motley Fool has a disclosure policy.
