Part 1: Deep dive on Fastly ($FSLY)
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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
Introduction [part 1]
Company Background [part 1]
Opportunity [part 1]
Business Model [part 1]
Competitive Advantages [part 1]
Risks [part 1]
Valuation [part 2]
Investment Model [part 2]
Analysts [part 2]
Technicals [part 2]
Conclusion [part 2]
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.
