AllAnalyst Report
logoMorningstarMay 06, 2021

Fastly, Inc.: Sales Growth Remains Strong at Fastly, but Margins Retreat, and the Pandemic Boost Is Gone

Symbols
FSLY
Sector(s)
Technology
Rating
Current Price
$57.21
Fair Value
Economic Moat
Stewardship
Summary

Fastly operates a content delivery network (CDN), which is necessary for entities to provide faster and more reliable online content. Fastly’s strategy differs from traditional CDNs, which focused on locating servers in as many locations as possible to store copies of files that consumers most use. Fastly is far fewer sites than traditional CDNs, but it houses servers in the most network-dense data centers. 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. Fastly gears its service to the largest, most sophisticated enterprises rather than small companies and generated about two thirds of its revenue in the United States in 2020.

Subscribe to Yahoo Finance Plus Essential for full access
Exclusive reports, detailed company profiles, and best-in-class trade insights to take your portfolio to the next level
Try it Free

Analyst Profile

Matthew Dolgin

Equity Analyst
Matthew Dolgin is an equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers companies in the technology sector.Before joining Morningstar in 2016, Dolgin was a compliance examiner for the National Futures Association.Dolgin holds a bachelor’s degree in kinesiology from Northern Illinois University, a master’s degree in business administration from the University of Notre Dame, and a juris doctor degree from the Illinois Institute of Technology’s Chicago-Kent College of Law. He holds the Chartered Financial Analyst® designation.