Fastly Stock Jumps Nearly 100% This Week On AI-Fueled Earnings

Fastly Inc (NASDAQ:FSLY) shares are rising Friday morning and are up nearly 100% for the week after a strong earnings report highlighted the company's expanding role in the fast-growing agentic AI market. Here’s what investors need to know.

• Fastly stock is trading near recent highs. Where is FSLY stock headed?

AI Pivot Drives Investor Optimism

The stock’s rise comes as Fastly’s CEO Kip Compton emphasized the company’s transformation into a key player for autonomous models and bots that navigate the web, which has attracted significant investor interest and optimism in the market.

Fastly reported quarterly revenue of $172.6 million, reflecting a 23% year-over-year increase, and its earnings per share doubled analyst expectations, marking a significant milestone for the company.

Compton noted that the shift towards agentic AI is fundamentally changing internet traffic patterns, with increased demand for Fastly’s services to manage this new wave of automated traffic.

The company is also guiding for 2026 revenue to be between $700 million and $720 million, significantly above Wall Street’s previous estimates. Fastly’s security revenue grew by 32%, driven by products designed to address the challenges posed by AI traffic, further solidifying its market position.

Momentum Signals Technical Strength

The stock is currently trading 68.9% above its 20-day simple moving average (SMA) and 65.2% above its 100-day SMA, indicating robust short-term and medium-term strength.

Shares have increased 101.25% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

The RSI is at 81.56, which indicates that the stock is in overbought territory, suggesting that it may be due for a pullback. Meanwhile, MACD is above its signal line, indicating bullish momentum.

The combination of overbought RSI and bullish MACD suggests that while the stock is experiencing strong momentum, traders should be cautious of potential corrections.

• Key Resistance: $17.50
• Key Support: $15.00

Fastly’s Business Model

Fastly operates a content delivery network, which is necessary for entities to provide faster and more reliable online content. Fastly’s strategy differs from traditional CDNs, which focus on locating servers in as many locations as possible to store copies of files that consumers most use.

Instead of simply storing static content, it allows its customers to program on its platform, enabling edge computing and better service of the more dynamic content that was traditionally not well served by CDNs.

Analysts Maintain Cautious Outlook

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $10.64. Recent analyst moves include:

• RBC Capital: Sector Perform (Raises Target to $12.00) (Feb. 12)
• Piper Sandler: Neutral (Raises Target to $14.00) (Feb. 12)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Fastly, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 96.83) — Stock is outperforming the broader market.

The Verdict: Fastly’s Benzinga Edge signal reveals a strong momentum setup. The high momentum score indicates that the stock is currently performing well relative to the market, suggesting continued interest from investors.

FSLY Shares Gain Friday

FSLY Price Action: At the time of publication, Fastly shares were up 2.43% at $16.43, according to Benzinga Pro data. The stock surged roughly 80% in Thursday's trading session.

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