Spooling Up? We Check In On Fastly.

The lockdown darling finally has grownups running the show. Can the new team deliver?

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If Rates Drop, Fastly May Break Out

Fastly FSLY 0.00%↑ , once touted as a Cloudflare NET 0.00%↑ competitor, has stayed largely in its (slow!) lane whilst NET has expanded into security and other matters.  The company was in our view mismanaged by its founder and CEO, until the board finally pulled the plug and changed the team a year back.  The company now has a CEO and a CFO both skilled in the selling of smaller tech companies to bigger tech companies, which gives you a clue about the possible direction of travel here.  Rumors of the company’s sale to Cisco or Amazon have swirled in the past, but have remained mere rumors.

Recent below-the-waterline moves inspire confidence, such as the company buying back its convertible debt below par.  That's a grownup thing to do which tells you that the adults are now in charge.

At present though, the revenue and cashflow still look weak; we're looking to this management team to see if that can be turned around to the upside.

Let’s review the numbers, the valuation, and the stock chart.