Fastly stock price has soared: does it have more upside?

Fastly stock price surged to its highest level since February 2024 as the company’s recovery accelerated. FSLY jumped to a high of $18.25, up by over 273% from its lowest level in 2025 as its turnaround gained steam. This recovery has pushed its market capitalization to over $2.7 billion.

Fastly stock has rebounded as the turnaround continues

Fastly is a top software company offering solutions to thousands of websites globally, such as Financial Times, Stripe, Wayfair, Guardian, and Airbnb.

The stock has rebounded in the past few days as the recent financial results showed that its business continued growing in the fourth quarter of last year.

Fastly’s revenue rose by 23% to $172.6 million, while its gross margin jumped to a record high of 61.4%. This revenue growth mirrored that of Cloudflare, a similar company that offers DNS solutions to thousands of companies.

Fastly’s annual revenue jumped to $624 million, while the Remaining Performance Obligations (RPO) jumped by 55% to $354 million. 

Most notably, the company boosted its forward guidance and now expects that its revenue will be between $168 million and $174 million, up by 18% YoY. It expects that the annual revenue will be between $700 million and $720 million, up by 14% YoY.

Fastly is benefiting from the ongoing demand from artificial intelligence (AI), with more companies using its platform to provide security to these companies. It is also benefiting from the ongoing growth of its total addressable market (TAM), which has jumped to over $22 billion.

Wall Street analysts have started boosting their Fastly stock targets. For example, Citigroup boosted its target from $10 to $13, while Royal Bank of Canada hiked the target to $12. DA Davidson and Piper Sandler analysts boosted their targets to $13 and $14. 

Therefore, the average estimate among all analysts covering the company is $12, much lower than the current $18. That is a sign that most analysts expect it to retreat in the coming months.

A likely reason for this is that analysts believe that the company is highly overvalued. For example, Fastly has a forward revenue growth of 11% and a net income margin of minus 19.5%, giving it a rule-of-40 metric of minus 8%. A negative rule-of-40 metric is a sign that a company is focusing on growth at the expense of its profits.

FSLY stock price technical analysis 

Fastly stock chart | Source: TradingView 

The weekly timeframe chart shows that the Fastly stock price has remained in a tight range in the past few months. It has remained between the key support at $5.04 and $25 since 2022.

The stock then rebounded recently, moving from to its highest level since February 2024. Its consolidation was part of the accumulation phase of the Wyckoff Theory.

Therefore, the stock may continue rising as bulls target the upper side of the range, potentially to the key resistance level at $25.50. A move above that level will point to more gains, potentially to the 23.6% Fibonacci Retracement level at $36.

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