Fastly Earnings: Results Aren't Nearly as Bad as Stock Movement Suggests

No-moat Fastly reported fourth-quarter earnings on Feb. 14 that sent its stock down more than 20% in after-hours trading, but results were not too bad, and 2024 guidance puts the company on the improving trajectory that we’ve expected. While we think the market is overreacting to a slightly soft fourth quarter and first-quarter outlook, the stock had gotten ahead of itself, in our view. We’re maintaining our $20 fair value estimate, which leaves the stock only fairly valued after the selloff.