Software is rapidly reducing operating expenses for businesses. The tailwinds undeniable fueling SaaS companies have led to lofty valuation multiples historically,
but rich prices also make re-ratings harder and place a ceiling on returns -
over the past six months, the industry was flat while the S&P 500 climbed by 13%.
Looking back on content delivery stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Cloudflare (NYSE:NET) and its peers.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the software development industry, including Bandwidth (NASDAQ:BAND) and its peers.
A number of stocks fell in the afternoon session after investor caution spread amid concerns that the rally in artificial intelligence stocks might have created a bubble. After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains.
This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced.
There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.
Fastly’s third quarter was marked by strong revenue growth and robust operating leverage, as the company’s cross-sell and upsell strategies translated to notable gains across its product lines. Management credited disciplined execution and targeted investments in security enhancements and platform capabilities as primary drivers. CEO Kip Compton highlighted the success of multiproduct wins with strategic accounts and the expansion of Fastly’s security offerings, stating that these moves provided “exceptional performance, security, and operational efficiency.” The quarter also benefited from early bookings linearity and a focus on cost management, resulting in improved profitability and free cash flow.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Wondering how the US markets performed one hour before the close of the markets on Thursday? Discover the movers and shakers of today's session in our comprehensive analysis.
Shares of edge cloud platform Fastly (NYSE:FSLY) jumped 26.7% in the morning session after the company reported third-quarter financial results that surpassed expectations and provided a strong outlook.
Stay up-to-date with the latest market trends in the middle of the day on Thursday. Explore the top gainers and losers during today's session in our detailed report.
Edge cloud platform Fastly (NYSE:FSLY) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 15.3% year on year to $158.2 million. On top of that, next quarter’s revenue guidance ($161 million at the midpoint) was surprisingly good and 4.7% above what analysts were expecting. Its non-GAAP profit of $0.07 per share was significantly above analysts’ consensus estimates.
Edge cloud platform Fastly (NYSE:FSLY) announced better-than-expected revenue in Q3 CY2025, with sales up 15.3% year on year to $158.2 million. On top of that, next quarter’s revenue guidance ($161 million at the midpoint) was surprisingly good and 4.7% above what analysts were expecting. Its non-GAAP profit of $0.07 per share was significantly above analysts’ consensus estimates.
After the conclusion of the US market's regular session on Wednesday, let's examine the after-hours session and unveil the notable performers among the top gainers and losers.
A number of stocks jumped in the afternoon session after blockbuster quarterly results from tech titans Apple and Amazon boosted investor confidence, supported by impressive earnings from key cloud and crypto leaders, Cloudflare and Coinbase.
We discuss how cloud outages may impact stocks beyond Amazon. Plus, GM's great results may show how weak EV sales will be in the U.S. and the how co-CEO roles have become so popular in tech.
