**Fastly Overvalued Despite Strong Year-to-Date Performance**
Fastly, Inc. (FSLY) shares are currently trading at a forward price/sales (P/S) ratio of 5.21, significantly higher than the broader Zacks Computer and Technology sector average of 3.98. Year-to-date, Fastly’s stock has surged 147.5%, outperforming competitors Akamai (AKAM) and Amazon (AMZN), which saw increases of 11.3% and 10.6% respectively.
Looking ahead, Fastly anticipates revenue growth of 14% for fiscal 2026, with revenues projected between $700 million and $720 million. The company expects first-quarter 2026 revenues to fall between $168 million and $174 million, reflecting an 18% year-over-year increase. However, challenges such as stiff competition, customer usage variability, and increased capital expenditures may limit further appreciation in stock value. Analysts project non-GAAP earnings of 23 cents to 29 cents per share for 2026, up from 4 cents per share in 2025.
