’Reddit is built for this moment’ - Stock soars on crushed earnings
In recent transactions involving Fastly, Inc. (NYSE:FSLY), which has seen its stock decline over 10% in the past week and 26% year-to-date according to InvestingPro data, CEO Todd Nightingale sold 8,595 shares of the company’s Class A common stock on February 25, 2025. The shares were sold at a weighted average price of $6.87, amounting to a total transaction value of $59,047. This sale was executed to satisfy tax obligations associated with the vesting of previously granted performance-based restricted stock units.
In addition to the sale, Nightingale acquired a total of 95,213 shares on February 26, 2025, through two separate transactions. These acquisitions were performance-based restricted stock unit awards and were not associated with any cash transaction. Following these transactions, Nightingale’s direct ownership in Fastly stands at 1,639,919 shares.
In other recent news, Fastly Inc . reported its fourth-quarter 2024 earnings, revealing a revenue of $140.6 million, which exceeded expectations of $138.29 million. However, the company reported a larger-than-expected loss per share of $0.03, missing the forecasted loss of $0.0034. This mixed financial performance led to a significant decline in Fastly’s stock, falling 19.07% in after-hours trading. Additionally, Fastly’s revenue guidance for 2025 was slightly ahead of consensus estimates by about 2 points, despite anticipated margin dilution.
Analyst firms have adjusted their outlooks on Fastly, with DA Davidson maintaining a Neutral rating and a price target of $7.50, while Citi and Piper Sandler both reduced their price targets to $9, also maintaining Neutral ratings. Analysts have noted that Fastly’s growth was driven by better-than-expected performance in content delivery and security services, though concerns remain about the company’s reliance on a concentrated customer base. Fastly is focusing on international expansion and growth investments, aiming to improve its financial metrics and diversify its revenue base.
The company’s strategic focus includes expanding in the EMEA and APAC regions, which is expected to increase capital expenditures and potentially compress gross margins. Despite some positive developments, Fastly faces challenges in achieving profitability and demonstrating tangible progress in its growth strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.