🚀 Fastly +16%! Another company that could profit from the AI boom
Shares of Fastly $FSLY surged nearly 16% on Friday, October 9, after analysts at Oppenheimer significantly improved their outlook on the company.
• Stock increase: +15.9% during Friday trading
• New target price: $35 and upgrade to Outperform
• Q2 revenue: $183.3 million, up 23% year-over-year
• Security segment revenue grew 43%
• Q3 guidance: $184–190 million in revenue
Fastly operates infrastructure that speeds up and secures internet services. Analysts now expect the company to benefit significantly from growing AI agent traffic and demand for cybersecurity. Larger customer contracts and first revenues from AI traffic are behind the positive recommendation.
In our view, Fastly has an interesting position. The more people and companies use AI, the greater the demands on internet infrastructure and its security. However, the stock has already risen significantly this year, so we would be cautious at the current valuation. The results on November 4 will tell a lot.
Do you have Fastly in your portfolio? And do you think it could be one of the next winners of the AI boom? 👇