Ignore Fastly -- Here Are 2 Better Stocks
Fastly's (NYSE: FSLY) stock was cut in half this year after the company missed analysts' expectations for two straight quarters. A service outage in June also tarnished the cloud service provider's reputation, resulted in the loss of a top-10 customer, and caused delays for upcoming projects. As a result, Fastly expects its revenue to rise just 17%-20% this year, compared to its 45% growth in 2020, and it could fall further behind its competitors in the content distribution network (CDN) and edge computing markets.
Fastly's stock still isn't cheap at 13 times this year's sales, and it could struggle to justify that high price-to-sales ratio if it doesn't stabilize its core business soon. Fastly isn't doomed yet, but investors should seriously consider investing in its rivals Cloudflare (NYSE: NET) and Akamai (NASDAQ: AKAM) instead.
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Source Fool.com
