Fastly, an edge cloud platform company, is well-positioned to capitalize on the emerging agentic AI wave. Unlike traditional LLMs, autonomous AI agents require low-latency execution and continuous querying, which Fastly's edge infrastructure and security tools are optimized to provide. The company shows strong earnings growth with consensus estimates of 71.43% quarterly growth and 307.69% for full-year 2026, while consistently beating analyst expectations. Evidence suggests Meta's popular Muse platform may be leveraging Fastly's technology.

Three internet software companies—Fastly, Five9, and Workiva—are recommended as strong investment picks following their 30%+ returns in Q3 2026. All three companies are leveraging AI adoption to drive growth, with favorable Zacks Rank ratings (#1 or #2) suggesting continued upside potential in Q4. Fastly benefits from AI-driven traffic growth, Five9 is expanding through AI agents and automation, while Workiva's earnings estimates are rising with up to 24.7% upside potential.

Zacks Research showcased strong performance across its various investment portfolios and rating systems during the week ended October 2, 2026. Multiple stocks received upgrades and delivered significant gains, including CRCT and PGEN surging 32% and 30.8% respectively following recommendation upgrades. The Zacks Rank #1 portfolio outperformed the S&P 500 by 2.3 percentage points year-to-date, while the Focus List portfolio returned 19.86% versus 13.14% for the S&P 500 through August 31, 2026.

Fastly (FSLY) has significantly outperformed the Computer and Technology sector year-to-date, returning 152.2% compared to the sector average of 22.4%. The stock holds a Zacks Rank #2 (Buy) with consensus earnings estimates up 41.5% in the past quarter. Arrow Electronics (ARW) is another standout performer in the sector, up 106% year-to-date with a Zacks Rank #1 (Strong Buy).

Zacks Premium offers investment research tools including Style Scores that rate stocks based on value, growth, and momentum characteristics on an A-F scale. The Zacks Rank system, which has averaged +23.8% annual returns since 1988, is complemented by these Style Scores to help investors identify high-probability stocks. Fastly (FSLY) is highlighted as a #2 Buy with strong momentum metrics and positive earnings revisions.

Fastly CEO Kip Compton sold 50,392 shares worth approximately $1.3 million on September 14, 2026, through a pre-established Rule 10b5-1 trading plan. Despite the stock's impressive 222% one-year return, the sale was non-discretionary and pre-scheduled. Compton retains 851,949 shares valued at $21.18 million, maintaining significant alignment with shareholders. The company continues to benefit from AI infrastructure demand with record Q2 revenue of $183.3 million and forecasted 2026 revenue between $732-746 million.

Fastly's CFO Richard Wong sold approximately 148,000 shares worth $4.2 million on August 18, 2026. The sale was non-discretionary, executed automatically to cover tax liabilities from vesting equity awards. Wong retains 1.1 million shares post-transaction, maintaining significant alignment with shareholders. The stock has surged 276% over the past year, and the company reported record Q2 revenue of $183.3 million with improving profitability metrics.

AppLovin demonstrates significantly stronger revenue growth than Fastly, with Q1 2026 revenue reaching $1.8 billion (59% YoY growth) compared to Fastly's $173 million (20% YoY growth). AppLovin trades at a premium valuation (P/S ratio of 28) while Fastly trades at a lower multiple (P/S ratio of 4), though Fastly achieved record gross margins of 62.5%. Wall Street was disappointed by Fastly's 2026 guidance of $710-725 million in sales, representing only 16% YoY growth.

Fastly President of Go to Market Scott R. Lovett sold 41,716 shares worth approximately $741,000 on June 17, 2026. The sale was part of a pre-arranged Rule 10b5-1 trading plan and represented only 2.91% of his holdings, leaving him with over 1.3 million shares. Analysts note this is not a red flag as Lovett maintains substantial equity in the company, and Fastly continues to show strong fundamentals with 20% year-over-year revenue growth.

Fastly stock plunged 38.23% to $19.50 despite posting record Q1 results with 20% sales growth and raised 2026 guidance. The sell-off was driven by concerns about slowing core networking services growth (11% vs. market expectations), though the company's Security and Compute segments showed strong growth of 67% and 47% respectively. The stock trades at 71x forward earnings after tripling over the past year.

U.S. tech stocks reached record highs on May 7, 2026, as crude oil tumbled nearly 3% on hopes Iran will accept a U.S. memorandum to reopen the Strait of Hormuz. The Nasdaq 100 gained 0.4% to 28,706 while the S&P 500 rose 0.2% to 7,376. Earnings drove significant stock-specific moves, with major winners including AAON (+36%), Datadog (+30%), and H&R Block (+26%), while notable losers included Planet Fitness (-33%), Insmed (-22%), and Zoetis (-22%).

Fastly stock dropped 14% on Tuesday following conflicting analyst reports. Craig-Hallum downgraded the stock to 'hold' citing fair valuation and soaring hardware costs, while Evercore initiated coverage at 'outperform' highlighting strong AI edge computing demand. Investors favored the bearish outlook despite Fastly's 345% gain over the past year.