Should Fastly's (FSLY) New Partner Certification Program Prompt Action From Investors?

• Fastly, Inc. recently launched its Fastly Certified Services Partner Program, providing comprehensive training and certification in advanced security solutions for technical security professionals at partner organizations.
• This initiative enables partners to deliver certified implementation services, giving customers greater choice and flexibility while expanding Fastly's reach through its partner ecosystem.
• We’ll explore how empowering partners to implement Fastly’s security solutions could strengthen adoption and support its long-term business prospects.

Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

Fastly Investment Narrative Recap

To be a Fastly shareholder, you have to believe in the company's ability to drive adoption of its advanced security products and reduce customer concentration, all while fending off pricing pressure from larger cloud competitors. The launch of the Fastly Certified Services Partner Program may accelerate adoption and support higher-margin growth, but it does not materially change the critical short-term catalyst: successful growth in enterprise security revenue. The main risk remains: revenue volatility due to customer concentration and competition.

Recently, Fastly announced enhancements to its Managed Security Service, introducing immediate incident notifications and robust Bot Management. This aligns with the company’s push to expand its edge security offerings as a catalyst to unlock new enterprise growth, underscoring the importance of consistently growing revenue from security solutions.

By contrast, investors should also be aware that customer concentration risk means that reliance on only a few large accounts can still...

Read the full narrative on Fastly (it's free!)

Fastly's outlook anticipates $694.5 million in revenue and $44.3 million in earnings by 2028. This reflects a 6.7% annual revenue growth rate and an increase in earnings of $191.9 million from the current level of -$147.6 million.

Uncover how Fastly's forecasts yield a $10.42 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Six distinct fair value estimates from the Simply Wall St Community range from as low as US$0.32 to as high as US$15.89 per share. With ongoing customer concentration risk a key issue, the wide spectrum of viewpoints reminds you to explore multiple perspectives before making up your mind.

Explore 6 other fair value estimates on Fastly - why the stock might be worth as much as 46% more than the current price!

Build Your Own Fastly Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Fastly research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free Fastly research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fastly's overall financial health at a glance.

Interested In Other Possibilities?

Our top stock finds are flying under the radar-for now. Get in early:

• AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• These 11 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com