Is It Too Late to Jump on the Fastly Stock Pullback?

FSLY is currently trading down 30% in 2021

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Fastly, Inc. (NYSE:FSLY) is an American cloud computing services provider. Fastly’s edge cloud platform helps customers extend their core cloud infrastructure and includes Fastly's content delivery network, image optimization, video and streaming, cloud security, and load balancing services. Fastly’s customers include notable companies like Pinterest (PINS), The New York Times (NYT), and GitHub. This afternoon, FSLY was last seen trading down 1.1% at $60.40.

Fastly stock has decreased 23% over the past 12 months, and 55% since touching its October high of $136.50. Shares of FSLY are also down by roughly 30% year-to-date, and is currently staring up at the overhead 100-day moving average. However, Fastly stock is still up 53% since bottoming out at its May 13 low of $39.47.

DailyFSLYwith100MA

Checking in on the fundamentals, we'll start with the company's earnings history. Fastly is batting 50/50 when stepping up to the earnings plate over the past 12 months. Starting with an earnings beat for Q2 of 2020, followed by an earnings miss for Q3 of 2020, tailed by an earnings beat for Q4 of 2020, and most recently missing expectations on Q1 of 2021 earnings.

From a fundamental perspective, Fastly appears to be a fairly standard growth company in the tech and cloud industries. FSLY has nearly tripled its revenues since 2017, but has seen its growth rate slow down significantly in 2021. As a result, Fastly stock has experienced a huge selloff, which could potentially be a buying opportunity.

Overall, FSLY stock comes with its fair share of risks, as with any growth stock, but the upside potential has become much more attractive after its recent dip in price. Finally, FSLY has a decent balance sheet with $1.1 billion in cash and $1.02 billion in debt.

Lastly, the stock's Schaeffer's Volatility Index (SVI) of 59% stands higher than just 8% of all other readings in its annual range. This implies that options players are pricing in relatively low volatility expectations at the moment. 

 

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