Fastly Inc (FSLY, Financial), a prominent player in the software industry, has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $2.99 billion, with its stock price at $23.18, marking a substantial increase from its past price of $14.73 three months ago. Over the past week, the stock price has seen a gain of 19.20%, and over the past three months, it has seen a gain of 48.87%. This impressive performance has caught the attention of investors and market analysts alike.
Fastly Inc: A Brief Overview
Fastly Inc operates a content delivery network, a crucial component for entities to provide faster and more reliable online content. The company's strategy differs from traditional CDNs, focusing on housing servers in the most network-dense data centers rather than simply storing static content. This approach allows its customers to program on its platform, enabling edge computing and better service of the more dynamic content. In 2022, Fastly generated nearly three quarters of its revenue in the United States. 
Profitability Analysis
Fastly Inc's Profitability Rank stands at 3/10 as of 2023-06-30, indicating a need for improvement. The company's Operating Margin is -45.13%, better than 18.26% of 2722 companies in the same industry. Its ROE is -17.02%, better than 28.27% of 2618 companies, while its ROA is -8.94%, better than 31.87% of 2780 companies. The company's ROIC is -15.76%, better than 27.26% of 2777 companies. These figures suggest that while Fastly Inc has room for improvement, it is performing better than a significant portion of its competitors. 
Growth Prospects
Fastly Inc's Growth Rank is 6/10, indicating a promising growth trajectory. The company's 3-Year Revenue Growth Rate per Share is 6.60%, better than 46.78% of 2390 companies, while its 5-Year Revenue Growth Rate per Share is 20.10%, better than 81.9% of 1873 companies. The company's future total revenue growth rate estimate is 18.25%, better than 75% of 500 companies. However, its 3-Year EPS without NRI Growth Rate is -27.90%, better than only 17.47% of 1969 companies, and its 5-Year EPS without NRI Growth Rate is -38.40%, better than just 4.04% of 1162 companies. These figures suggest that while Fastly Inc has demonstrated strong revenue growth, it needs to improve its EPS growth. 
Top Holders of Fastly Inc's Stock
Fastly Inc's stock is held by several prominent investors. George Soros (Trades, Portfolio) is the top holder, owning 997,540 shares, which constitutes 0.77% of the company's stock. Jim Simons (Trades, Portfolio) holds the second-largest number of shares, with 634,200 shares, or 0.49% of the stock. Steven Cohen (Trades, Portfolio) holds 289,301 shares, or 0.22% of the stock.
Fastly Inc's Competitors
Fastly Inc faces competition from several companies within the same industry. Matterport Inc (MTTR, Financial) has a stock market cap of $778.694 million, CS Disco Inc (LAW, Financial) has a market cap of $567.102 million, and Vimeo Inc (VMEO, Financial) has a market cap of $667.451 million. These figures suggest that Fastly Inc is a significant player in its industry, with a larger market cap than its main competitors.
Conclusion
In conclusion, Fastly Inc has demonstrated impressive stock performance over the past three months, with a significant surge in its stock price. The company has a promising growth trajectory, but it needs to improve its profitability and EPS growth. Despite facing competition from several companies within the same industry, Fastly Inc has a larger market cap than its main competitors. Investors should keep a close eye on this company as it continues to navigate the market.
