New/renewed analyst sentiment (upgrade/price target) and the thesis directly relate to near-term trading interest in FSLY; guidance was raised earlier but this piece is primarily driven by rating revisions and short-seller debate.
Here’s Why Short Sellers Could be Wrong On This heavily Shorted Stock Jabran Kundi Tue, June 16, 2026 at 2:05 PM GMT+2 2 min read FSLY Fastly Inc. (NASDAQ: FSLY ) is one of the 7 Worst Cloud Stocks To Buy According to Short Sellers . On June 5, William Blair analyst Jonathan Ho reiterated a Buy rating on Fastly Inc.
(NASDAQ:FSLY) without assigning any price target to the stock. In contrast to William Blair, Raymond James analyst Frank Louthan had upgraded the stock to Outperform from Market Perform on May 8. He also assigned a price target of $23 to the stock.
The analyst believes demand for the company’s network capabilities will stay strong going forward. As AI inference takes center stage and requires better data center interconnection, Fastly’s products are going to stay in demand, according to the analyst. Fastly Inc.
(NASDAQ:FSLY) is one of the 7 Worst Cloud Stocks To Buy According to Short Sellers. Fastly Inc. (NASDAQ:FSLY) reported its first-quarter fiscal 2026 earnings on May 6.
The market reacted negatively to the report, with the stock down over 37% after the announcement. This negative sentiment comes as a surprise, considering the company not only raised its outlook but also had a positive analyst sentiment after the earnings. For the full year 2026, FSLY has raised its revenue guidance to between $710 million and $725 million.
This translates to an EPS of $0. 27 to $0. 33.
Despite competitors raising prices, management intends to stick to the pricing it has already agreed with its customers. Fastly Inc. (NASDAQ:FSLY) operates a programmable, high-performance edge cloud platform that delivers faster, safer, and more scalable sites and apps to customers.
The company is based in San Francisco, California. While we acknowledge the potential of FSLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
READ NEXT: 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds and 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds . Disclosure: None. Follow Insider Monkey on Google News .
Oraklio AI Trading Intelligence
Oraklio turns news, price data, and market signals into structured BUY / SELL / NO_TRADE calls - updated continuously throughout the trading day.
Get started freeAlready have an account? Sign in →