Fastly (FSLY) Stock Hits 52-Week High on Debt Relief and Q4 Earnings Beat

TLDR

• Fastly (FSLY) hit a 52-week high of $25.80 on March 18, up from a 52-week low of $4.65
• The stock is up roughly 259% over the past year and 137% year-to-date
• Q4 revenue came in at $172.6 million, beating estimates of $161.4 million — a 22% year-over-year jump
• The stock is surging in part due to relief after its 0% convertible senior notes matured on March 15, removing a debt overhang
• Fastly posted its first-ever profitable fiscal year, with Q4 EPS of $0.12 vs. the $0.06 analyst estimate

Fastly (FSLY) hit a new 52-week high of $25.80 on Tuesday, as the stock continued a run that has taken it from a low of $4.65 over the past year.

Fastly, Inc., FSLY

The stock was last trading at $25.81, up 11.08% on the day. That puts its year-to-date gain at roughly 137% and its one-year return at approximately 259%.

The move higher comes as investors digest a strong fourth quarter. Fastly reported Q4 revenue of $172.6 million, beating the consensus estimate of $161.4 million. That’s a 22% increase compared to the same quarter a year ago.

Earnings per share came in at $0.12 for the quarter, beating the analyst estimate of $0.06. Operating profit hit $21.2 million, well above expectations of $10.2 million.

Perhaps more important to Tuesday’s rally, Fastly’s 0% convertible senior notes matured on March 15. The debt had been a source of anxiety for investors in recent weeks, and its resolution appears to have cleared the air.

The stock had sold off in the lead-up to that maturity date. Tuesday’s move looks like a rebound from that pullback, with traders moving back in now that the uncertainty is gone.

Analyst Price Target Upgrades

Wall Street has been playing catch-up with the stock. DA Davidson raised its price target to $13 from $9 after the Q4 results, though it kept a Neutral rating.

RBC Capital went further, lifting its target to $20 from $12. RBC pointed to improved execution and the potential for multiple expansion as reasons for the upgrade.

That $20 target is now well below where the stock is actually trading, suggesting analyst estimates haven’t kept pace with the market’s enthusiasm.

Fastly’s market cap currently sits at $3.67 billion. Average daily trading volume is around 10 million shares, and the technical sentiment signal is rated as a buy.

First Profitable Year

The Q4 results capped what Fastly described as its first-ever profitable fiscal year. That milestone appears to be a key driver behind the renewed investor interest.

InvestingPro data shows a 170% price gain over just the last six months. The same data flags the stock as potentially overvalued relative to its Fair Value estimate, placing it on the “Most Overvalued” list.

Fastly also made a housekeeping change earlier this year, switching its auditing firm from Deloitte & Touche to KPMG for the fiscal year ending December 31, 2026.

The stock’s technical sentiment is currently rated as a buy, per market data as of March 18.

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