Market News

Fanout to Help Fastly Bolster App Development Capabilities

Cloud computing services provider Fastly, Inc. (NYSE: FSLY) recently revealed that it has acquired an open technology-based push platform, Fanout, which makes building and scaling real-time APIs easier. The terms of the deal have not been disclosed so far.

Following the news, shares of the company declined 3.2% on Wednesday. The stock pared its losses slightly to close at $18.03 in the extended trading session.

Fastly’s buyout of Fanout is in line with the company’s strategy of adding technologies that enable a smooth and secure experience for customers.

One of the advantages of adding Fanout’s network to Fastly’s platform includes transport agnostic real-time development, which allows customers to use their existing HTTP origin and streamline workflow efficiently.

Management Commentary

The CEO of Fastly, Joshua Bixby, said, “Integrating Fanout’s real-time application technology into ours gives developers a consistent development experience, empowering them to effortlessly upgrade their end-user experiences in a fraction of the time and with fewer resources. The integration will also allow customers to leverage Fastly’s global scale to support the needs of the largest enterprises.”

Stock Rating

Consensus among analysts is a Hold based on one Buy, six Holds and two Sells. Fastly’s average price target of $24.43 implies upside potential of 36.8% from current levels. Shares have declined 73.5% over the past year.

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