Credit Suisse analyst Brad Zelnick maintains an Outperform rating on Fastly and lowers his price target from $110 to $100.
Raymond James analyst Robert Majek maintains an Outperform rating on Fastly.
More Questions Than Answers: Zelnick believes Fastly left investors and analysts with “more questions than answers.”
Fastly said its largest customer, TikTok, provided less revenue than expected in guidance. The company also disclosed other customers had lower usage in the quarter.
“Who are the few other customers that disappointed?” Zelnick asked in a note. He also wants to know how the lower revenue and impact from TikTok will impact profitability when full results are released.
Majek believes the question over the other customers is “more concerning” than TikTok results being lower.