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Fastly Faces Turbulent Times Amid Price Target Slash and Executive Share Sale

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 2/19/2026, 2:33 pm ET 2/19/2026, 2:33 pm ET | 4 min 4 min read
Fastly Faces Turbulent Times Amid Price Target Slash and Executive Share Sale Thumbnail

On Friday, Fastly Inc.’s stocks traded down by -3.4 percent following disappointing Q3 earnings report and revenue forecasts.

Candlestick Chart

Live Update At 14:32:24 EST: On Thursday, February 19, 2026 Fastly Inc. stock [NASDAQ: FSLY] is trending down by -3.4%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Fastly has been navigating through a financial landscape that is anything but steady. The company’s recent earnings report presented a mixed bag: revenue stood at $543.67M, yet profitability metrics raise eyebrows. With an EBIT margin deep in the negative, at -21.2%, alongside a concerning pretax profit margin of -36.5%, Fastly is struggling to translate revenue into profit.

Financial ratios reveal more about Fastly’s challenges. The company’s price to sales ratio is on the lower side at 2.06, emphasizing its undervaluation, while its leverages, like a total debt-to-equity of 0.44, reflect moderate reliance on borrowing. A quick ratio of 1.4 indicates a fair degree of liquidity to cover short-term liabilities.

In its latest quarter ending Sep 30, 2025, Fastly recorded a total revenue of roughly $158.22M, while total expenses overshadowed at $187.01M, resulting in net income from continuous operations at $-29.48M. The company managed to post a free cash flow of $18.17M, albeit with significant expenses such as depreciation and stock-based compensations adding complexities to its financial narrative.

Investor Scrutiny Intensifies

Artur Bergman’s significant sale of Fastly shares signals more than just a routine cash-out. The $10M transaction occurred amid swirling investigations by law firm Halper Sadeh LLC, who are diving into whether fiduciary duties were breached by officers, raising alarms among shareholders.

Such moves, especially by a co-founder, often generate a ripple effect of concern over investor confidence and the strategic direction of a tech company like Fastly. Notably, Bergman’s transaction, despite his retained shares, mirrors a classic strategic hedge against volatility.

On the other hand, the cut in price target from $11.50 to $9, even with a Neutral outlook, stands as a cautionary message despite hints at a positive setup for the upcoming quarter. This narrowing of the price target corridor often implies anticipated struggles or external pressures that could weigh heavily on the stock’s near-term performance.

More Breaking News

Conclusion

Fastly is caught between the need for growth and the urgency to stabilize its finances. The market continues to react to these critical developments—the lowered price target and share sell-off mix into a cocktail of uncertainty. With an investigation looming over its management practices, the company faces pivotal times. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” This principle is particularly relevant as traders observe Fastly’s maneuvers through these challenges, keenly watching updates on market share gains or further strategic alliances, which could provide a much-needed morale boost. Fastly’s journey will demand all its agility to navigate the waves of market forces, with its story being penned one quarter at a time.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Ellis Hobbs

Trainer and Mentor on Tim Sykes’ Trading Challenge
He teaches webinars on Tim Sykes’ Trading Challenge He treats trading like a business, not a hobby He emphasizes taking small risks — “If you get the process right, money is a forgone conclusion.”
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”