Shares stayed in a strong uptrend after our alert, adding another 5%, while trading up to $10.95. Undefined and lower resistance at $10.75-$11 was cleared and held. Current support is at $10.25-$10.
We have been profiling the stock since early November and said continued closes above $9.50 could lead to a gap up towards $12.50. This level served as solid support throughout April before a 32% plunge to below $9 in early May following earnings. The company reported a seven-cent loss but better than forecasts, along with higher revenues.
In the most recent quarter, Fastly reported a profit of two-cent a share versus expectations for another loss of seven cents. Revenue also topped forecasts at $137 million versus $132 million.
For 2025, analysts expect the company to earn $0.03 a share with the high at $0.16. There are also some firms that believe the company could lose up to $0.05 a share next year.
FSLY is one of our favorite small-cap stocks to play the artificial intelligence sector. Its businesses include CDN’s (content delivery networks), video streaming, and security solutions that cater to a number of big-cap companies.
Shares had hovered below $10 since May 2nd but started to clear this level on the December 2nd 16% breakout. Our near-term target remains at $12.50 but there is a chance for a run towards $14 if that level is cleared. The 52-week high is north of $25.
