FSLY Stock Crashes 25% Despite Strong Earnings, Forecast Raise: Retail Sees Long-Term Potential

• FSLY stock has risen over 200% this year.
• Fastly beat revenue and profit expectations for the first quarter and raised the forecasts for 2026.
• Stocktwits sentiment for FSLY shifted to ‘extremely bullish’ from ‘bullish.’

Fastly, Inc. shares plunged 25% in overnight trading ahead of Thursday after the company released its first-quarter results and raised its full-year guidance.

Following the stock’s massive run-up in recent months, some traders argued the financial performance fell short of the lofty expectations priced into the shares. Still, many remained confident in Fastly’s long-term potential, viewing the sharp pullback as a buying opportunity.

FSLY Results Recap

In Q1, revenue increased 20% to $173 million, beating analysts’ estimate of $171.8 million. The company earned a $0.13 per-share profit on an adjusted basis, compared to a $0.05 per-share loss last year, which also came in higher than expectations of $0.08 per share.

The company’s remaining performance obligations jumped 63% to $226 million.

Subsequently, Fastly raised its 2026 revenue forecast to a range of $710 million to $720 million, up from the prior range of $700 million to $720 million. The adjusted profit view was raised to $0.27 to $0.33 a share, up from $0.23 to $0.29 a share previously.

The company’s second-quarter revenue and adjusted profit forecast were also higher than what analysts had penciled in.

Fastly provides cloud infrastructure services that help websites and apps load faster, stay secure, and handle large amounts of internet traffic. Its platform is widely used for content delivery (CDN), cybersecurity, and edge computing.

Retail, Analyst View On FSLY

Fastly's shares have rallied sharply since its previous earnings report in February and are up 210% year-to-date.

On Stocktwits, the retail sentiment for FSLY shifted to ‘extremely bullish’ late Wednesday from ‘bullish’ the previous day.

“$FAST This enjoyed a nice run up, so what we're seeing is classic sell the news and an additional profit from the long to short switch for the big boys,” a trader said. “Once the dust settles very soon, this will rebound hard. The numbers were great overall and going to exponentially increase in this environment. It's so funny how scripts are flipped with very little substance.”

Another trader speculated that a milder-than-expected forecast could be behind the negative sentiment. “Q1 numbers are great, almost perfect, but overall the guidance is not really spectacular - with these price levels full year EPS should be rather somewhere in the range $0.4 - 0.5, but it's only $0.27 - $0.33. Still long-term great value to hold. I'm happy I kept my hedge from above $30,” they said.

Currently, seven of 11 analysts recommend ‘Hold’ for the FSLY stock, three rate it ‘Buy,’ and one rates it ‘Strong Sell,’ per Koyfin. Their average price target is 26% lower than the stock’s last close.

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