What Happened?
Shares of edge cloud platform Fastly (NYSE:FSLY) jumped 79.9% in the afternoon session after it reported strong fourth-quarter earnings that beat analyst sales and earnings estimates. Management attributed this performance to robust demand in its Network Services and Security segments, with security revenue growth accelerating and new products gaining traction with enterprise clients. CEO Kip Compton emphasized the company's ongoing focus on cross-sell opportunities and disciplined execution, citing larger customers directing more traffic to Fastly's platform due to stability and performance benefits. Looking ahead, guidance for sales and earnings also came in ahead of consensus. Overall, it was an impressive quarter.
The shares closed the day at $16.03, up 71.4% from previous close.
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What Is The Market Telling Us
Fastly’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. But moves this big are rare even for Fastly and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 5.8% on the news that analysts suggested that the recent "SaaSpocalypse" sell-off had pushed valuations into deeply oversold territory, sparking a wave of opportunistic buying. While the sector had been hammered in early 2026 by fears that autonomous AI agents would replace traditional seat-based subscriptions, institutional investors began rotating back into "sticky" incumbents. This shift was fueled by a Barclays report arguing that corporate transitions away from legacy systems take years, not weeks, providing a protective moat for established providers in compliance and governance.
Fastly is up 56.9% since the beginning of the year, and at $15.99 per share, has set a new 52-week high. Investors who bought $1,000 worth of Fastly’s shares 5 years ago would now be looking at an investment worth $156.65.
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