Fastly (NYSE:FSLY) Shares Gap Down – Here’s What Happened

Fastly, Inc. (NYSE:FSLY) gapped down before the market opened on Thursday . The stock had previously closed at $26.03, but opened at $22.73. Fastly shares last traded at $23.5980, with a volume of 1,816,794 shares.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly reported record Q2 2026 revenue of $183.3 million, up 23.3% year over year. Security revenue grew 43%, while gross margin reached a record 65.8%, highlighting improving business mix and operating execution. Fastly Q2 2026 Earnings Call Highlights
• Positive Sentiment: Non-GAAP earnings were $0.15 per share, well above the $0.07 consensus estimate and a loss of $0.03 per share in the year-ago quarter. Revenue also exceeded expectations, producing earnings and revenue surprises of 114.29% and 5.34%, respectively. Fastly Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Fastly raised its outlook. Q3 revenue guidance of $184 million to $190 million and EPS guidance of $0.11 to $0.13 are above consensus estimates, while full-year 2026 EPS guidance is $0.50 to $0.54. Fastly Increases Its Full-Year Outlook
• Positive Sentiment: KeyCorp raised its price target from $27 to $30 and maintained an “overweight” rating, indicating continued confidence in Fastly’s growth and security opportunity. Benzinga
• Neutral Sentiment: Fastly’s partnership with Experian’s Agent Trust ecosystem supports its positioning in AI-agent verification, secure transactions and identity-based edge policies, but the longer-term revenue impact remains uncertain. Fastly and Experian Agent Trust
• Negative Sentiment: The market reaction suggests a “sell-the-news” dynamic: shares had already gained sharply, and valuation concerns leave less room for disappointment even after the earnings beat. Fastly Stock Sinks Despite Strong Q2 Results

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on FSLY shares. Craig Hallum downgraded Fastly from a “buy” rating to a “hold” rating and set a $24.00 price target on the stock. in a research report on Tuesday, April 14th. Citigroup raised their target price on shares of Fastly from $13.00 to $25.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Royal Bank Of Canada cut their price target on shares of Fastly to $18.00 and set a “sector perform” rating for the company in a report on Thursday, May 7th. Freedom Capital raised Fastly to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Piper Sandler restated a “neutral” rating on shares of Fastly in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $24.11.

Fastly Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.46 and a quick ratio of 1.46. The company has a fifty day moving average price of $19.42 and a 200 day moving average price of $19.90. The stock has a market cap of $3.63 billion, a P/E ratio of -23.98 and a beta of 0.34.

Insider Buying and Selling at Fastly

In related news, insider Scott R. Lovett sold 41,716 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $17.77, for a total value of $741,293.32. Following the completion of the sale, the insider directly owned 1,392,778 shares of the company’s stock, valued at approximately $24,749,665.06. This represents a 2.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Lacey Compton III sold 9,313 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $20.79, for a total transaction of $193,617.27. Following the completion of the sale, the chief executive officer directly owned 1,063,945 shares of the company’s stock, valued at $22,119,416.55. The trade was a 0.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 274,529 shares of company stock worth $4,761,780. 4.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Fastly

A number of hedge funds and other institutional investors have recently modified their holdings of the business. PNC Financial Services Group Inc. lifted its holdings in Fastly by 84.6% during the first quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company’s stock worth $40,000 after acquiring an additional 633 shares during the period. Sound Income Strategies LLC purchased a new stake in shares of Fastly during the 1st quarter valued at $44,000. EverSource Wealth Advisors LLC raised its stake in shares of Fastly by 39.8% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,204 shares of the company’s stock worth $64,000 after purchasing an additional 627 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in shares of Fastly during the 4th quarter worth $41,000. Finally, Align Financial LLC purchased a new position in shares of Fastly in the 4th quarter worth about $41,000. Hedge funds and other institutional investors own 79.71% of the company’s stock.

Fastly Company Profile

Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly’s real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.

Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.