Separately, Fastly announced an AI-driven real-time anti-piracy partnership with LALIGA, a commercial catalyst not contemplated in the original article. The deal introduces a fresh fundamental angle — monetizing AI-adjacent edge workloads via a marquee sports-rights customer — that partially offsets the sentiment reset on the agentic AI trade.
Watch Wednesday's earnings print for two things: management commentary on the LALIGA partnership's revenue contribution and pipeline read-through, and any quantification of agentic AI-driven traffic that justifies (or undercuts) the rally that just unwound.
Fastly Stock Up 133% YTD Hits 4-Year High Into Wednesday Earnings
NEW YORK, April 29 —
Fastly (FSLY) jumped 8.4% to a four-year high ahead of Wednesday's quarterly print, lifted by a products showcase and a new AI partnership with LaLiga.
- Shares at $26.39, up 133% year-to-date and at the highest level in four years
- Trading at 5.21x sales and 71.5x forward earnings on $624mn TTM revenue
- Q1 results land Wednesday: revenue growth, enterprise customer count, and forward guide are the three lines that matter
What Actually Happened
Two events landed in the same week, and traders bid both. Fastly ran a products showcase and signed an AI partnership with LaLiga. That's the kind of enterprise logo that lets a content delivery vendor charge premium pricing on inference traffic. The 8.4% session move pushed shares to levels last seen in 2022, when the CDN group was still riding the post-pandemic streaming bid.
The setup matters more than the announcements. Fastly spent three years rebuilding credibility after the June 2021 outage and a string of guidance cuts that broke the growth-stock thesis. A 133% YTD rally says some of that credibility is back. Wednesday's print tells investors whether the multiple has run past the fundamentals.
The Catch
5.21x sales is no longer a busted-stock multiple. Fastly bottomed near 1.5x sales in 2024, when investors priced it as structurally broken. At 71.5x forward earnings on $624mn of trailing revenue, the stock now trades as if the LaLiga deal is already in the bookings. Any guidance softness, especially on enterprise customer adds, gets punished harder at $26 than it would have at $7.
Bottom Line
The stock is more interesting today than it was six months ago, and harder to underwrite at this level. Growth investors who missed the move face a binary event Wednesday with no margin of safety. Value investors lost their entry point in February. Watch one line on the print: enterprise customer count. That's the number that has historically moved Fastly's multiple in either direction.
A full Basis Report analysis with a BUY rating sits at /reports/ai9WwL0a4NYyQzGhBFAacMnk for readers who want the underlying model before Wednesday.
Basis Report does not hold positions in securities discussed. This is not investment advice.