ONGOING DEADLINE ALERT: Faruqi & Faruqi, LLP investigates claims on behalf of Fastly investors

If you have incurred losses exceeding $100,000 on investments in Fastly stock or options between February 15, 2024 and May 1, 2024 and would like to discuss your legal rights, Call Faruqi & Faruqi Partner Josh Wilson direct at 877-247-4292 or 212-983-9330 (extension 1310). For more information you can also click here: www.faruqilaw.com/FSLY.

NEW YORK, June 28, 2024 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Fastly, Inc. (“Fastly” or the “Company”) (NYSE: FSLY) and reminds investors of the Deadline: 23 July 2024 to serve as lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. Since its founding in 1995, the firm has recovered hundreds of millions of dollars for investors. See www.faruqilaw.com.

As described in detail below, the Complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) contrary to its representations to investors, Fastly actually experienced a significant slowdown in growth among its largest customers and lost the increased market share it gained as a result of the 2023 CDN consolidation trend; (ii) the foregoing issues were likely to have a material adverse effect on the Company’s revenue growth; (iii) accordingly, the Company was unlikely to achieve its own previously published FY 2024 revenue guidance; (iv) as a result, the Company’s financial condition and/or prospects were overstated; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On May 1, 2024, Fastly announced its financial results for the first quarter (“Q1”) of 2024. Despite Defendants’ positive statements just three months earlier about Fastly’s performance and near-term business prospects, the Company reported revenue of only $133.52 million, missing consensus estimates by $0.35 million. The Company also lowered its fiscal year 2024 revenue guidance to a range of $555 million to $565 million, significantly below its previously published fiscal year 2024 revenue guidance of $580 million to $590 million and also below consensus estimates of $584.62 million for the same period.

On the same day, Fastly held a conference call with investors and analysts to discuss the Company’s first quarter 2024 results (the “First Quarter 2024 Earnings Call”). In explaining the Company’s disappointing revised outlook for fiscal 2024, Defendant Nightingale stated that “the largest factor is a decline in revenue from a small number of our largest customers. Our top ten customers’ first quarter revenue declined from 40% to 38%(,)” and that the Company observed “significant volatility” in the multi-CDN strategy operated by many of Fastly’s top ten customers. In addition, defendant Ronald Kisling, Fastly’s chief financial officer, stated that the company “faces a challenging environment of revenue declines at our largest customers, which overshadows the impact of new customer acquisitions and product pipeline” and that the company will not benefit in 2024 from the positive impact of CDN consolidation in early 2023, which resulted in favorable sequential growth in the prior-year period.

On May 2, 2024, Bank of America downgraded Fastly stock to Underperform from Buy and cut its price target to just $8 per share from $18, noting that “slowing growth at Fastly’s largest customers, delivery market share losses, and limited visibility in the second half of the year make us doubt a recovery in 2024” and that “while we continue to like Fastly’s positioning in the edge computing market, we view it as a 2025 opportunity rather than a near-term growth driver.”

As a result of these developments, Fastly’s stock price fell $4.14 per share, or 32.02%, to close at $8.79 per share on May 2, 2024.

The court-appointed lead plaintiff will be the investor with the greatest financial interest in the relief sought by the class, who is reasonable and typical of class members, and who will direct and oversee the litigation on behalf of the putative class. Any member of the putative class may, through counsel of his or her choosing, ask the court to serve as lead plaintiff, or he or she may choose to do nothing and remain an absent class member. Your ability to share in any relief will not be affected by your decision to serve as lead plaintiff.

Faruqi & Faruqi, LLP also encourages anyone with information about Fastly’s conduct, including whistleblowers, former employees, shareholders and others, to contact the company.

Learn more about the Fastly Class action lawsuit, go to www.faruqilaw.com/FSLY or Call Faruqi & Faruqi Partner Josh Wilson direct at 877-247-4292 or 212-983-9330 (extension 1310).

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