8 Cloud Computing Stocks Under $10

4) Fastly, Inc. (NYSE:FSLY)

Share Price as of November 26: $7.95

Number of Hedge Fund Holders: 14

Fastly, Inc. (NYSE:FSLY) is a cloud computing services provider specializing in content delivery networks (CDNs), edge computing, and internet security solutions. It allows its customers to run custom applications directly on its edge servers, enabling them to perform complex tasks like personalization and data analysis.

Wall Street believes that the company is well-placed for sustainable growth in 2025. With the company’s competitor going bankrupt (Edgio), experts believe that Fastly, Inc. (NYSE:FSLY) should see growth over the upcoming quarters. The company’s Chief Executive has also highlighted that some accounts have shifted traffic towards Fastly, Inc. (NYSE:FSLY). This was seen primarily in overlapping accounts where the transition was straightforward.

Oppenheimer believes that Fastly, Inc. (NYSE:FSLY) should be the biggest beneficiary of this shutdown. While Akamai announced that it is the winning bidder to acquire select assets from Edgio, analysts believe that Fastly, Inc. (NYSE:FSLY) can capture a chunk of other customers or ~$20 million – $60 million of incremental revenue run rate. As a result of the shutdown, the industry has been consolidated into 3 players, with Fastly the premium one, as per Oppenheimer.

In Q3 2024, the company’s top 10 customers made 33% of revenue as compared to 40% in Q3 2023. The acceleration in growth outside the top 10 was stronger than expected and Fastly, Inc. (NYSE:FSLY) believes this growth to be sustainable. The company targets to bring the top 10 concentration to 30%.