To The Moon

Interesting to watch the stock movement of $Fastly, Inc.(FSLY)$  today, especially after its recent Q1 earning release. My current take on this stock is short term bullish, long term bearish - and I will explain why.

Short term bullish :

$Fastly, Inc.(FSLY)$  Q1 earning release is generally a positive news - beat estimates/forecasts, and paint a positive future outlook. Traders and analysts who swing along every single positive / negative news will likely to buy more of this stock in greater confidence or raise their target price of this stock.

Long term bearish :

A deeper look at $Fastly, Inc.(FSLY)$  Q1 earning release will reveal that while it is loss making, its revenue is not increasing significantly like we expect the revenue growth in a growth company to be. Apart from painting a more positive outlook, there are no info on how the company is going to do even better from current state. Also, if one were to remember its previous full year earnings result, one would be reminded that the current estimates were made lower (maybe that is why it is easier to meet in Q1?).

Conclusion :

Hence, despite its positive Q1 earning release and its current attractive price point (50% of its previous high just a few months ago), I am not confident that the rise in share price is sustainable in the long term. I sold my $Fastly, Inc.(FSLY)$  stock holding right after its previous full year earning release. 

Unless it can prove itself concretely that it is a worthy growth company (which is possible, since it is operating in a growing and highly demanded industry), I will not jump onto the bandwagon despite being short term bullish.