FSLY Cap Table @ $83.62
FSLY Cap Table @ 10x Sales
Further analysis forthcoming...
Fastly - Hand Over Fist
Summary
- FSLY has become the darling of "stay at home " stocks.
- The Company has achieved a monster valuation of $9BN or roughly 25x annual revenues with minimal EBITDA.
- There is little differentiation between content deliver networks (CDNs) and edge compute providers AKAM FSLY LLNW NET and others.
- Based on LLNW's current valuation of 3.5x sales, with similar scope and scale to FSLY, we see an anomaly.
- Based on retail/CNBC stay at home hype, the stock is wildly overvalued. We initiative coverage of FSLY with a SELL recommendation. Our price target is $35, a still rich 10x sales multiple.
Analyst’s Disclosure: I am/we are short FSLY.
We intend to provide additional commentary in our ongoing coverage of FSLY.
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