Fastly: Why Margin Convergence With Cloudflare Justifies A Multiple Re-Rating

Fastly is a cautious Buy, driven by successful cross-selling of high-margin security services and margin expansion. FSLY's edge architecture offers superior latency and logic capabilities versus AWS, supporting its competitive positioning in a specialized niche. Security vertical revenue grew 32% YoY, fueling net retention rate expansion to 110%, but future growth may slow as cross-selling saturates.