What Happened?
Shares of edge cloud platform Fastly (NYSE: FSLY) fell 6.7% in the afternoon session after its Chief Technology Officer, Artur Bergman, sold 40,000 shares of the company's stock.
The transaction was disclosed in a recent filing, showing the shares were sold at an average price of $11.43, totaling approximately $457,200. Such a sale by a high-level executive can sometimes concern investors, who may interpret it as a sign of weakening confidence in the company's near-term prospects. Following the sale, the CTO still held a substantial position in the company, with over 2.9 million shares.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Fastly? Access our full analysis report here.
What Is The Market Telling Us
Fastly’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 4.7% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
Fastly is up 25.2% since the beginning of the year, and at $11.54 per share, it is trading close to its 52-week high of $11.99 from November 2025. Investors who bought $1,000 worth of Fastly’s shares 5 years ago would now be looking at an investment worth $136.83.
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