Fastly, Inc. Class A Common Stock

The four content delivery stocks tracked by this publication reported a very strong second quarter, with group revenues beating analysts' consensus estimates by 3.6% and next quarter's revenue guidance coming in 1.8% above expectations. Akamai Technologies reported revenues of $1.1 billion, up 5.4% year on year, but delivered the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth among its peers, with its stock down 4.9% since reporting. Fastly reported revenues of $183.3 million, up 23.3% year on year, achieving the biggest analyst estimate beat and highest guidance raise of the group, though its stock fell 8.3% since reporting. F5 reported revenues of $865.1 million, up 10.9% year on year, while Cloudflare reported revenues of $696.1 million, up 35.9% year on year, scoring the fastest revenue growth in the group and seeing its stock rise 3% since reporting.

Fastly CEO Charles Lacey “Kip” Compton III sold 18,485 shares of Class A Common Stock on July 16 and 17, 2026, at a weighted average price of $20.74 per share, realizing approximately $383,400. The transactions were executed under a Rule 10b5-1 trading plan established in August 2025, with 11,412 shares sold to cover tax withholding obligations and the remaining 7,073 shares sold as a non-discretionary part of the plan. Following the sales, Compton retains 1,045,460 shares directly, representing a 0.67% ownership stake in the company. Fastly reported trailing twelve-month revenue of $652.6 million and a net loss of $103.1 million, with a market capitalization of $3.2 billion as of the July 17 close.

AppLovin reported first-quarter 2026 revenue of $1.8 billion, a 59% year-over-year increase, while Fastly posted $173.0 million, up 20%. AppLovin's quarterly sales rose every quarter in 2025 and reached $1.8 billion in Q1 2026, with a net income margin of 65% for the period. Fastly's Q1 revenue represented its slow and steady expansion, but its stock fell in May after the company forecasted full-year 2026 sales between $710 million and $725 million, implying about 16% growth over 2025. AppLovin expects Q2 sales of approximately $1.9 billion, continuing its rapid expansion in the mobile advertising market, and trades at a price-to-sales ratio of 28 compared to Fastly's multiple of four.

The four content delivery network stocks tracked by StockStory reported a strong first quarter, with aggregate revenue beating analyst consensus by 1.8% while next-quarter revenue guidance was in line. Akamai Technologies posted revenue of $1.07 billion, up 5.8% year on year and in line with expectations, but its EPS guidance missed, making it the weakest performer on estimates, guidance, and growth. F5 delivered the biggest beat, with revenue of $811.7 million up 11% year on year and full-year EPS guidance above expectations, sending its stock up 25.4%. Fastly grew revenue 19.8% to $173 million and exceeded EPS guidance, yet its shares fell 43.6%, while Cloudflare posted the fastest revenue growth at 33.5% to $639.8 million but had the weakest full-year guidance update, and its stock dropped 12.8%. On average, share prices across the group are down 6% since reporting.

StockStory identifies Advanced Micro Devices and BWX Technologies as growth stocks to watch while warning that Fastly faces an uphill battle. AMD posted 35% one-year revenue growth and is projected to accelerate to 47.6%, with earnings per share rising 23% annually over five years. BWXT achieved 21.4% one-year revenue growth and expects 14.7% growth next year, supported by an 8.7 percentage point expansion in free cash flow margin over five years. Fastly, in contrast, struggles with a 107% net revenue retention rate, a 59.4% gross margin, and persistent operating losses.

Upland Software, Fastly, and Strategy shares declined in afternoon trading as investors rotated out of high-multiple growth stocks. Upland Software fell 8%, Fastly dropped 6.1%, and Strategy lost 5%. The sell-off was driven by May import price data showing a 1.9% monthly rise versus a 1.1% forecast and an annual gain of 6.7%, the largest since August 2022, which complicated inflation expectations ahead of new Federal Reserve Chairman Kevin Warsh's first meeting. Additional pressure came from a Bank of America fund manager survey that showed portfolio managers cutting tech allocations and naming an AI bubble as the second-largest tail risk, cited by 28% of respondents, while SpaceX's $60 billion acquisition of AI coding platform Cursor signaled consolidation of valuable AI software assets.