Is Fastly Stock a Buy?
Cloud networking specialist Fastly (NYSE: FSLY) is on a roll right now. The content delivery network (CDN) expert's stock has nearly quadrupled in 52 weeks, boosted by a combination of COVID-19 lockdowns and the rise of streaming video services. Is it too late to pick up this skyrocketing stock, or are Fastly shares still a good deal at these lofty prices?
Fastly is ridiculously expensive from pretty much every possible angle. The company's earnings, free cash flows, and earnings before interest, taxes, depreciation, and amortization (EBITDA) are all negative, making it impossible to measure the stock by ratios such as price-to-earnings or price-to-EBITDA. The company does have significant sales adding up to $267 million over the last four quarters, but that gives us a nosebleed-inducing price-to-sales ratio of 42 times trailing revenue.
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Source Fool.com
