Cloud Stock Plummets From Peak After Earnings

Fastly stock is on track for its worst day in two years

Fastly Inc (NYSE:FSLY) stock is headed for its largest percentage drop since February 2022, down 29.2% to trade at $16.67 at last glance, after the cloud company’s disappointing first-quarter forecast and fourth-quarter revenue miss.

Craig-Hallum downgraded FSLY to “hold” from “buy,” after the earnings event, though no fewer than three other analysts chimed in with small price-target hikes. Considering the 12-month consensus price target of $21.78 is now a 30.2% premium from its current perch, bear notes could add pressure the equity going forward. 

Fastly stock is on the short sell restricted (SSR) list today amid the volatility. The negative price action has Fastly stock gapping away from its recent Feb. 12 two-year high of $25.87 and slipping into negative territory for 2024. The stock’s 320-day moving average still lingers below as potential support at the $15 level, however. 

Already today, FSLY has seen 3.4 times the average daily options volume in the options pits, with 31,000 calls and 18,000 puts exchanged at last check. The February 17.50 call is the most popular, with new positions being bought to open there. 

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