Fastly (FSLY) stock is flying high today after the cloud-computing company posted its first profitable year and Q4 earnings per share (EPS) topped Street estimates by a whopping 100%. As the financial release drew massive retail and institutional interest to FSLY, its share price soared through all of its major moving averages (MAs), indicating bulls are now firmly in control.
At the time of writing, Fastly shares are trading at more than triple their price last year in April. Yet, a senior William Blair analyst argues there’s still time to build a position in this Nasdaq-listed firm.
William Blair analyst Jonathan Ho now sees FSLY stock as an underappreciated play on artificial intelligence (AI).
According to Ho, as agentic AI continues to drive traffic to content delivery networks (CDNs), this San Francisco-headquartered firm will see a huge surge in volume feeding into revenue growth.
Additionally, he noted that the company’s upbeat 2026 guidance suggests its Q4 strength wasn’t a one-off stroke of luck but a feature of its commitment to boosting operating leverage.
In Q4, Fastly’s gross margin increased by 650 bps on a year-over-year basis to 64%.
William Blair remains bullish on Fastly shares because the company’s Q4 release confirms agentic web traffic is evolving beyond an experimental niche into a scalable revenue stream.
Moreover, the CDN firm is currently going for a price-to-sales (P/S) multiple of 2.28x only, which makes it significantly cheaper to own than rivals like Cloudflare (NET).
While FSLY’s relative strength index (14-day) did push into the overbought territory on Thursday, its outlook for $710 million in revenue this year (miles ahead of Street estimates) warrants sticking with it.
Note that options traders also currently see Fastly pushing past $22 a share by mid-September.
Heading into the earnings print, analysts had a consensus “Hold” rating on FSLY shares.
While they’re already trading above the Street-high price target of $14, it’s conceivable that experts will upwardly revise their estimates for Fastly following today’s blockbuster earnings release.
