At its Investor Day, Fastly set a 14%–21% compound annual growth target through 2029, with a $1.1 billion–$1.3 billion goal; it also forecast 20%–22% operating and 67%–71% gross margins. Shares rose 13.69% Wednesday to close at $29.65.
After the announcement, Freedom Capital Markets raised its price target to $37 from $32 and kept a buy rating. BofA Securities raised its target to $22 from $20 but retained an underperform rating. RBC Capital maintained sector perform at $25, while DA Davidson kept a neutral rating and $23 target.
Fastly said it launched runtime control, firewall and API Security capabilities on Monday to give organizations visibility and control over their AI systems. The company said machine-generated traffic exceeded 50% of its network in July and August, and AI traffic grew 6.5 times faster than human traffic from January through May. It also cited a McKinsey finding that 93% of organizations exceed their AI budgets.
