| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 64.87 | 601 |
| Intrinsic value (DCF) | 2.66 | -71 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Fastly, Inc. (NYSE: FSLY) is a leading edge cloud platform provider that enables developers to build, secure, and deliver high-performance digital experiences at the edge of the internet. Operating in the fast-growing Infrastructure as a Service (IaaS) sector, Fastly's programmable platform specializes in web and application delivery, offering solutions like Compute@Edge, dynamic site acceleration, edge security, and live streaming services. The company serves diverse industries, including digital publishing, e-commerce, media, and financial services, helping businesses enhance speed, reliability, and security for their applications. With a global footprint spanning the U.S., Asia Pacific, and Europe, Fastly is positioned at the forefront of edge computing innovation, a critical enabler for low-latency, scalable digital infrastructure. Despite competitive pressures, Fastly's focus on developer-friendly tools and real-time performance optimization makes it a key player in the evolving cloud and content delivery network (CDN) landscape.
Fastly presents a high-risk, high-reward investment opportunity in the edge computing and CDN space. The company operates in a rapidly growing market driven by increasing demand for low-latency, secure digital experiences. However, Fastly faces stiff competition from larger cloud providers like Cloudflare and Akamai, which have greater scale and financial resources. While Fastly's revenue growth is notable, the company remains unprofitable, with negative EPS and net income. Its high beta (1.461) indicates significant volatility, making it suitable for growth-oriented investors comfortable with sector risks. Key strengths include its developer-centric platform and innovative edge solutions, but execution risks and competitive pressures remain concerns. Investors should monitor customer acquisition, margin improvements, and competitive differentiation.
Fastly competes in the crowded edge cloud and CDN market, where differentiation hinges on performance, security, and developer tools. Its primary competitive advantage lies in its programmable edge platform, which allows deep customization for developers—a key selling point for tech-savvy enterprises. However, Fastly lacks the scale of incumbents like Akamai (AKAM) and Cloudflare (NET), which boast broader global networks and more diversified security offerings. Fastly's Compute@Edge competes with Cloudflare Workers and AWS Lambda@Edge, but its smaller ecosystem limits third-party integrations. The company's focus on high-performance use cases (e.g., media streaming, e-commerce) gives it niche strength, but it struggles to match the bundled cloud services of hyperscalers like AWS and Google Cloud. Financially, Fastly's smaller revenue base and negative profitability put it at a disadvantage against cash-rich rivals investing aggressively in R&D and acquisitions. To sustain growth, Fastly must expand its enterprise footprint and enhance its security suite while improving operational efficiency.