Compton Charles Lacey III sold $383K of FSLY

Fastly (FSLY) has partnered with Comcast to embed its delivery software within Comcast's nationwide network, targeting live streaming for NBCUniversal's Peacock. The collaboration aims to support future use cases like gaming, cybersecurity, and AI inference. Fastly's edge cloud platform processes and secures digital applications globally, and this deal integrates its software into over 200 Comcast edge compute centers.

Fastly (FSLY) presented a platform strategy at its Investor Day, focusing on delivery, security, compute, and observability. The company reported Q2 revenue growth of 23% YoY, with net revenue retention at 117%. Fastly's infrastructure was found in 29.3% of tests involving Meta's Muse assistant, indicating potential AI-driven demand. The company set 2029 targets of $1.1B-$1.3B revenue, with 14%-21% annualized growth.

Zscaler (ZS) fell 9% after its CRO Mike Rich's exit, while Fastly (FSLY) dropped 6% due to Citi's doubts about AI traffic revenue under its billing model. Zscaler appointed an internal successor, and Fastly's CFO noted AI traffic is small but growing. Both stocks declined on company-specific news.

Fastly (FSLY) shares fell 8.4% to $27.16 after analysts questioned Muse's revenue potential. DA Davidson raised its price target to $23 but kept a Neutral rating, citing limited near-term revenue impact. BofA Securities increased its target to $22 but maintained an Underperform rating. Analysts estimate Muse could add 2% to 2026 revenue, with security business benefiting from AI.

Fastly's stock surged to $31.3 after launching AI firewall and runtime control tools, with Q2 revenue up 23% and RPO up 38%. Analysts expect revenue growth but note shares are above average price targets. Technical indicators suggest potential gains to $34.77. Key risks include guidance stalls and competition from Akamai.

Fastly's stock dropped 6.9% in morning trading, reversing prior gains. Analysts like Citi and BofA expressed skepticism about AI revenue growth and profitability, while insider selling added pressure. Competitors Cloudflare and Akamai traded higher, indicating the selloff is Fastly-specific. The Nasdaq and S&P 500 were down slightly, offering no macro support.