FSLY is still going strong. AI stock prediction correctly predicts another significant return on investment for subscribers.
Fastly (FSLY) is a content delivery network or CDN provider that helps businesses deliver their digital content quickly and securely to end users. Its services are used by some of the biggest names in tech, including Shopify, Airbnb, and Spotify, and it is headquartered in San Francisco, California. The company has just announced a remarkable fourth-quarter performance, while subscribers to our AI-powered forecast service have enjoyed a staggering 92.26% return on our FSLY prediction made on November 22nd, 2022, for the three-month period ending in February. Additionally, our most recent growthtech.ai forecast, which was published on March 13th, 2023, and covered a one-week time horizon, resulted in a return of 17.02%.
The Good, The Bad & the Ugly
Things have not always been so amazing for Fastly. Perhaps you remember that Fastly dealt with a temporary outage that occurred in June 2021 that was widely reported, and affected several high-profile websites, including Amazon, Reddit, and Twitch. This incident led to a significant drop in the stock price, as investors became concerned about the company's reliability. However, Fastly was able to quickly resolve the issue and has taken steps to prevent similar incidents from happening in the future.
The outage occurred when one of Fastly's customer configuration settings was triggered by a valid customer request. This resulted in a bug in Fastly's software that caused 85% of its global network to be affected. As a result, several high-profile websites, including Amazon, Reddit, and Twitch, were temporarily down and experienced significant disruptions to their services.
The issue was quickly identified by Fastly's engineers, and they were able to resolve it within an hour. Fastly also took steps to prevent similar incidents from happening in the future by updating its software and configuration systems and improving its monitoring and testing procedures. Despite the quick resolution of the issue, the outage had a significant impact on Fastly's stock price, as investors became concerned about the company's reliability. This incident served as a reminder of the potential risks that come with investing in technology companies that rely on complex and interconnected systems. However, it is worth noting that such outages are not uncommon in the technology industry, and many companies have been able to bounce back from similar setbacks. Speaking of which let's discuss FSLY's recent quarter.
FSLY Record-Breaking Quarter
The company reported a record-breaking fourth quarter on February 15th, 2023, and a full year for 2022. The report highlights several key achievements that reflect the company's ongoing growth and success. In a statement, Todd Nightingale, CEO of Fastly, expressed his excitement about the company's record quarter and the significant improvement in gross margin. He also praised the speed of innovation at Fastly and the focus of its teams, noting that customers are passionate about the company's ability to elevate digital experiences at scale. Looking ahead to 2023, Nightingale expressed confidence in the company's continued momentum.
“I've been incredibly impressed with the speed of innovation at Fastly and the focus our teams have demonstrated as we move to a higher velocity go-to-market motion... Our customers are passionate about our ability to elevate digital experiences at scale and we look forward to continued momentum in 2023.”
According to the report, Fastly's revenue for the fourth quarter exceeded the high-end of its quarterly guidance range, reaching a record high and growing 22% year-over-year. This marks a significant milestone for the company, which has been expanding its services and capabilities to meet the evolving needs of its customers.
Fastly also achieved a record annual revenue of $432.7 million, representing a 22% growth year-over-year. This sustained growth demonstrates the company's ability to deliver value to its customers and capitalize on the rapidly growing demand for edge computing and cloud services.
One particularly notable achievement for Fastly in the fourth quarter was the improvement in gross margin. GAAP gross margin grew 380 basis points sequentially, while non-GAAP gross margin grew 340 basis points sequentially. This indicates an improvement in profitability for the company and reflects its ongoing efforts to optimize its operations and increase efficiency.
The report also highlighted Fastly's increased net retention rate in the fourth quarter. The trailing 12-month net retention rate (LTM NRR) increased to 119% from 118% in the third quarter of 2022. This metric reflects how much revenue Fastly is retaining from its existing customers over a 12-month period. The fact that this rate has increased is a positive sign for the company, as it indicates that customers are continuing to find value in its services and are choosing to stay with Fastly over the long term.
Another Winning FSLY Stock Prediction
Below is our stock prediction from our weekly stock forecast (7 days) publicly announcing FSLY as a strong buy on March 13th, 2023, to our subscribers getting exclusive market insights based on artificial intelligence. Subscribers who bought FSLY stock based on our AI forecast for the weekly time horizon on this date generated a profit of 17.02%. Understand this, the key benefit of employing artificial intelligence for stock market analysis is that it can study more assets objectively and continually throughout the day. By merging big data analytics with our AI prediction system, we can improve decision-making, result modeling and forecasting, and market knowledge.
This stock prediction has been consistently accessible in numerous predictions. You may spot greater possibilities as a subscriber when you review your daily forecasts by monitoring stock picks that keep appearing regularly in the AI stock predictions. Another indicator is stock picks that appear in multiple anticipated time periods, particularly throughout multiple predictions released each morning Eastern Standard Time. Based on the historical accuracy of each prior financial asset forecast as well as current market variables important to stock price, the AI system calculates the Signal Confidence (SC), which is stated as a percentage out of 100%. In this stock prediction, the Signal Confidence (SC) is 38%.
As you can see above, subscribers who bought FSLY stock based on our weekly AI forecast have a significant profit of 17.02% on top of the 92.26% ROI generated from the 3-month FSLY stock prediction made on November 22nd, 2022. The AI stock prediction system analyzes empirical data on financial market irregularities linked to trader overreaction and underreaction to produce circadian forecasts in various frames. Every day, you will be updated with the best potential stock opportunities identified by AI that are offered from the short-term to longer-term time frames
As a general rule of thumb, longer-term predictions tend to be much more accurate and the profits generated tend to be more substantial making our AI trading signals ideal for value-based investors. When combined with machine learning, these incredibly intricate mathematical functions for statistical programming and modeling are capable of comparing their current coefficients and algorithms to newly added data and then adapting to improve the models' accuracy through a process of validation and reflection.
Stock Ticker | Open: Mar 13, 2022 | Close: Mar 20, 2023 | ROI% |
Fastly (FSLY) | $13.10 | $15.33 | 17.02% |
Please remember that discretion should always be used when analyzing the market. Your own due diligence is always required and you should always get advice from a certified financial counselor prior to implementing any financial plans.
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Sources: 1. CNBC, "What is Fastly and why did it just take a bunch of major websites offline?" (2021)
2. Fastly Investor Relations, "Fastly Announces Fourth Quarter and Full Year 2022 Financial Results" (2023)
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