- RBC Capital analyst Rishi Jaluria downgraded Fastly, Inc (NYSE:FSLY) to Underperform from Sector Perform with a price target of $9 (22% downside), down from $17.50.
- The analyst attributed the downgrade to three primary reasons.
- Firstly, the company’s business is recession-prone due to its consumption-based model, high start-up exposure, lack of profitability, and the pricing-sensitive nature of CDN, Jaluria reasoned.
- Secondly, its CEO position remains vacant, causing an unclear turnaround path and making it harder for Fastly to catch up with Cloudflare, Inc (NYSE:NET) on the edge computing opportunity.
- Thirdly, its security portfolio lags peers, with little likelihood for changes given the near-term lack of funding (low cash balance, unprofitable, and stock down materially).
- Fastly will have to be more acquisitive to become a more serious contender in security, as per Jaluria.
- Price Action: FSLY shares traded lower by 5.41% at $11.53 on the last check Tuesday.
Ethereum’s Price Increased More Than 4% Within 24 hours
Over the past 24 hours, Ethereum's (CRYPTO: ETH) price has risen 4.06% to $1,634.21. This is contrary to its negative trend over the past week where it has experienced a 14.0% loss, moving from $1,884.21 to its current price.
