Fastly (NYSE:FSLY) Plunges after Disappointing Outlook – – TipRanks

Cloud computing service provider Fastly (New York Stock Exchange:FSLY) fell sharply in premarket trading as the company’s outlook disappointed investors. The company expects first-quarter sales to be in the range of $131 million to $135 million, with an adjusted loss of -$0.09 to -$0.05 per share. Analysts had expected revenue of $135.5 million and loss per share of -$0.03.

The company’s FY24 guidance calls for sales of between $580 million and $590 million, compared to the consensus estimate of $586 million. Additionally, Fastly projects EPS to fall between -$0.06 and breakeven. Analysts had expected a loss of $0.03 per share for FY24.

The company’s adjusted earnings for the fourth quarter were $0.01 per share, compared to -$0.08 per share in the year-ago period. This exceeded analysts’ expectations of -$0.03 per share.

Fastly’s fourth-quarter revenue was $137.8 million, up 15% year over year but below consensus estimates of $139.8 million.

What does the future hold for Fastly Stock?

Analysts are cautiously optimistic about FSLY stock, with the consensus rating being a “moderate buy” with 3 “buy” ratings and 4 “hold” ratings. FSLY’s average price target of $22 means it has 6.5% downside potential at current levels. FSLY stock has soared more than 65% over the past year, giving investors optimism.



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