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What Lies Beneath
by Alex King
I may have this flat wrong, and Fastly might just get consigned to the dustbin of faded 2020 rock stars. If so, c’est la vie, can’t win em all. But I rather suspect, and I am putting more money where my mouth already is, that “better than expected outcomes” (Ciovacco Capital, 2024) may be on the cards over at Cloudflare’s much-maligned delinquent cousin-competitor.
The story is in the numbers.
THE BAD. The stock dumped on earnings because either (1) it’s raining in Alpharetta, GA or (2) the company missed its own revenue guide by a whisker when markets are all amped up on hopium and intolerant of anything that doesn’t point to the bright and sunny uplands. In addition, the company is guiding to continued revenue deceleration and whilst you hear me say all the time, “I don’t see that happening, it looks like they are sandbagging”, I do see that happening here because, well, they just missed their own revenue number by about three dollars, and you would think that if they spent enough time looking down the back of the furniture they could find three dollars’ worth of recognizable revenue, which rather suggests they did look everywhere including at the back of the cooker, urgh, and still couldn’t find those three green ones. (There were some green things at the back of the cooker. But not Uncle Sams, sadly).
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