Why Is Fastly's Stock Plummeting Today?

Fastly Inc FSLY is trading significantly lower on Thursday morning after the company announced its CFO is stepping down and issued weak second-quarter guidance. 

What Happened: Fastly announced its first-quarter financial results on Wednesday after market close. The company reported an earnings loss of 12 cents per share, missing the estimate for a loss of 11 cents per share. It reported revenue of $84.85 million, missing the estimate of $85.08 million.

The cloud software provider projected revenue of $84 million to $87 million in the second quarter, below the estimate of $91 million. Fastly also announced CFO Adriel Lares will be stepping down. The company noted Lares will remain CFO until a successor is appointed.

“We had another outstanding quarter, delivering revenue of nearly $85 million, up 35% year-over-year. We are observing that many of the trends that emerged last year appear to have become permanent, even as the world begins to reopen," said Joshua Bixby, CEO of Fastly.

Related Link: Cramer Advises Viewers On Fastly, Wells Fargo And More

Analyst Rating Changes: Oppenheimer maintained its Outperform rating and lowered its price target from $110 to $85.

Piper Sandler maintained its Neutral rating and raised its price target from $45 to $65. 

Price Action: Fastly traded as high as $136.50 and as low as $22.01 over a 52-week period. At last check Thursday, the stock was down 23.40% at $44.48.