RBC Capital downgrades Fastly, cites recession worries and competition concerns

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RBC Capital downgraded Fastly ($NYSE:FSLY) on Tuesday, citing worries about a potential recession and competition from larger companies. This caused Fastly’s share price to drop. Many investors are concerned about how a recession could impact Fastly’s business. The company is also facing increased competition from larger firms. RBC Capital believes these factors could hurt Fastly’s earnings in the long term.

Market Reaction

The stock opened at $11.7 and closed at $11.4.

VI Analysis

FASTLY’s fundamentals reflect its long-term potential, and the company’s share price is currently undervalued by 78%. The fair value of FASTLY shares is around $52.3, as calculated by VI Line.

Summary

RBC Capital downgraded shares of Fastly on Monday, citing concerns about the company’s competitive position in the market. RBC is concerned that Fastly’s competitive position is under threat from larger rivals such as Amazon and Google. The analyst also noted that Fastly’s valuation is no longer as attractive as it once was. Despite these concerns, RBC still believes that Fastly is a strong company with a bright future. The analyst predicts that the stock will rebound and recommends buying on the dip.