Jonah’s Growth Stock Deep Dives

Jonah’s Growth Stock Deep Dives

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Jonah’s Growth Stock Deep Dives
Jonah’s Growth Stock Deep Dives
Part 1: Deep dive on Fastly ($FSLY)

Part 1: Deep dive on Fastly ($FSLY)

Jonah Lupton's avatar
Jonah Lupton
Oct 09, 2023
∙ Paid
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In order to read this entire deep dive on Fastly ($FSLY) you’ll need to become a paid subscriber by clicking the button below. If you’re already a paid subscriber than I thank you for your support. Paid subscribers receive 2-3 deep dives per month plus access to my investment portfolio (up +95% YTD), investment models and daily webcasts.


I also run a Stocktwits rooms where I post throughout the day about my investment portfolio (up +95% YTD) and my trading portfolio (up +69% YTD) plus my market commentary, quarterly earnings analysis, analyst upgrades/downgrades, daily webcasts and much more… this is also the best place to chat with me throughout the day.

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Jonah’s Deep Dives on Large/Mega Caps
We provide 3-4 deep dive writeups per month on large caps and mega caps which are companies with a market capitalization above $10 billion
By Jonah Lupton
Trading the Charts
Trading the Charts is a daily email with my favorite trading setups. You'll get access to my current trading portfolio, buys & sells, position sizes, entry & exit prices, and perhaps even some living trading & charting sessions.
By Jonah Lupton

Company: Fastly

Ticker: (FSLY)

Website: Fastly.com

IPO date: May 2019 (traditional IPO)

IPO price: $21.50

Current stock price: $16.11

Outstanding shares: 129.2 million

52 week high: $24.31 on September 01, 2023

52 week low: $7.15 on December 28, 2022

ATH: $136.50 on October 13, 2020

Market cap: $2.08 billion

Net cash/debt: -$98.3 million

Enterprise value: $2.18 billion

Headquarters: San Francisco, California, United States

Number of employees: 1,100+

Average price target from analysts: $17.41 or $19.06 (two different websites)


Investor Relations: https://investors.fastly.com

Q2 2023 Earnings Report: https://investors.fastly.com/news/news-details/2023/Fastly-Announces-Second-Quarter-2023-Financial-Results/ 

Q2 2023 Investor Supplement: https://investors.fastly.com/files/doc_earnings/2023/q2/supplemental-info/Fastly-Second-Quarter-2023-Investor-Supplement.pdf  

2023 Investor Day Presentation: https://investors.fastly.com/files/doc_events/2023/Jun/22/fastly-investor-day-2023.pdf 


Outline

  1. Introduction [part 1]

  2. Company Background [part 1]

  3. Opportunity [part 1]

  4. Business Model [part 1]

  5. Competitive Advantages [part 1]

  6. Risks [part 1]

  7. Valuation [part 2]

  8. Investment Model [part 2]

  9. Analysts [part 2]

  10. Technicals [part 2]

  11. Conclusion [part 2]

  12. Additional Sources [part 1 and 2]


Introduction

Disclosure: I do not have a position in FSLY in either one of my portfolios.

Last time I own FSLY was 2020 when I rode the stock from ~$20 to ~$120 because they were posting very strong YoY growth numbers. During the pandemic FSLY had the perfect customer base which included companies like Tik Tok, Shopify, Spotify, Stripe, DoorDash, Twitter, Pinterest, Etsy, Reddit and many more but as the pandemic ended and online usage at their customers started to slow down so did FSLY’s growth rates while they continued to hemorrhage cash and lose key customer’s like Tik Tok.

Last summer the FSLY Board of Directors finally named a new CEO but it was too little too late, the stock was trading in the low teens and essentially written off for dead. As you can see from the chart, FSLY was nothing more than a pandemic winner that is now trading below pre-pandemic prices along with companies like PTON, ETSY, SQ, DOCU and many more.

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