8 Worst Performing Tech Stocks in 2024

4. Fastly Inc. (NYSE:FSLY)

Year to Date Gain: -58.83%

Number of Hedge Fund Holders: 23

Fastly, Inc. (NYSE:FSLY) is a technology company that provides an edge cloud platform for processing, serving, and securing applications. Its edge cloud offers a way for developers to build a secure and deliver digital experience. Amid the digital revolution fueled by artificial intelligence, it is becoming one of the worst-performing tech stocks in 2024.

The stock is down by about 58.83% as investors react to the company’s failure to grow in a booming industry. While the edge computing market is expected to increase by 37% through 2030, stiff competition, especially from Cloudflare, has posed a significant danger to the company’s long-term prospects.

Since Cloudflare is twice as big as Fastly, Inc. (NYSE:FSLY), it has many new customers. While Fastly has delivered revenue growth in recent quarters, its growth rates have been much lower and have come at significant costs that have significantly affected its profit margins.

With the company projecting revenue growth of 15% for 2024, below the 17% growth recorded in 2023, the stock would always come under pressure as investors questioned its growth prospects. Revenue in the second quarter beat analysts’ estimates after increasing 8% to $132.4 million.

Nevertheless, Fastly, Inc. (NYSE:FSLY) struggled with higher costs, resulting in a net loss of $43.7 million, four times more than a net loss of $10.7 million delivered in the same quarter last year. The significant net loss and demand challenges for the company’s solutions have been the catalyst behind the stock being pounded in the market.

Amid the growth concerns, the company has embarked on a cost reduction process as it looks to bolster its profit margins. It has also reiterated its commitment to enhancing its edge cloud solutions and focusing on robust security solutions. Fastly, Inc. (NYSE:FSLY) had 23 hedge funds long its stock in the second quarter, with a total stake value of $32.97 million.