What Happened?
Shares of edge cloud platform Fastly (NASDAQ: FSLY) jumped 6% in the pre-market session after Oppenheimer upgraded the company to Outperform with a $35 price target.
In research covered by StreetInsider, Oppenheimer analyst Param Singh highlighted proprietary checks indicating third-quarter average deal sizes expanded on cross-selling newly launched security tools. Fastly rolled out its AI Runtime, AI Firewall, and API Enforcement suites to general availability in September, creating what the firm views as an unpriced revenue ramp as agentic artificial intelligence traffic accelerates network volumes and spurs adoption of Fastly's bot management capabilities.
Singh projects third-quarter revenue will reach the upper end of Fastly's $184 million to $190 million guidance range and expects management to raise full-year 2026 revenue growth to between 20% and 21%. That forecast reflects early AI monetization alongside roughly $10 million in revenue from Grand Theft Auto VI. Oppenheimer’s $35 target prices the stock at seven times estimated 2027 enterprise value to sales, below the 10.6-times peer median.
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What Is The Market Telling Us
Fastly’s shares are extremely volatile and have had 75 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 15 days ago when the stock dropped 4.2% on the news that soaring yields drove renewed pressure on tech stocks as investors took profits following its Investor Day event, having surged roughly 14.3% during the previous session when management outlined long-term financial targets through 2029.
Fastly is up 173% since the beginning of the year, but at $27.88 per share, it is still trading 16.8% below its 52-week high of $33.50 from April 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Fastly’s shares 5 years ago would now be looking at only $673.67.
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