Fastly: SaaS Play With Breakout Potential In 2026
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The Asian Investor31.08K FollowersFollow5ShareSavePlay(9min)CommentsSummaryFastly, Inc. delivered strong Q3 results, exceeding expectations on revenue, margins, and free cash flow, with a robust (raised) full-year outlook.The Saas firm achieved its third consecutive quarter of free cash flow in Q3'25 and is on track for its first full year of positive FCF.Strong margin momentum and RPO growth continue to support a strong buy rating for Fastly as we are heading into 2026.FSLY shares appear undervalued at a 2.3X forward P/S ratio, with 12% upside to fair value, supported by enterprise customer growth and margin expansion.Key FSLY risks include high stock-based compensation (21% of revenue), which may dilute shareholders and misalign incentives. metamorworks/iStock via Getty Images Content delivery network provider Fastly, Inc. (FSLY) reported better-than-expected earnings for its third fiscal quarter in November that beat on both the bottom and the top lines. As a result, due to stronger growth, shares ofThis article was written byThe Asian Investor31.08K FollowersFollowI am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.Analyst’s Disclosure:I/we have a beneficial long position in the shares of FSLY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You