What’s Going on With Fastly? Why Is FSLY Stock Dropping Today?

Fastly (NYSE:FSLY) stock is falling hard on Thursday following the release of the company’s earnings report for the fourth quarter of 2021.

A magnifying glass zooms in on the Fastly (FSLY Stock) website.

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The big news dragging down FSLY stock isn’t its most recent earnings. The company’s adjusted losses per share of -10 cents and revenue of $97.72 million beat out estimates. Wall Street was expecting -15 cents per share on revenue of $92.48 million.

Instead, it’s Fastly’s outlook for the upcoming year that has its stock slipping today. That includes adjusted per-share losses ranging from 13 cents to 15 cents on revenue of $97 million to $100 million for Q1. Unfortunately, that doesn’t look too good next to analysts’ estimates of -13 cents per share on revenue of $97.98 million.

Joshua Bixby, CEO of Fastly, doesn’t seem worried about its weak 2022 guidance. He said the following in the most recent earnings report.

“Coupled with a strong roadmap of new products, including our recent launch of Fastly’s Next-Gen WAF, the industry’s first and only unified WAF, we are excited about our opportunities in 2022 as we expand our network and capture the future growth potential of our edge cloud network.”

Trading of Fastly stock is on the rise today as investors react to today’s news. As a result, some 16 million shares have traded hands as of this writing. For the record, that’s well above the company’s daily average trading volume of about 2.8 million shares.

FSLY stock is down 30.4% as of Thursday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/02/whats-going-on-with-fastly-why-is-fsly-stock-dropping-today/.

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