12 Cheap Small-Cap Stocks to Invest In Before the Next Breakout

Page 6 of 11

6. Fastly, Inc. (NASDAQ:FSLY)

Number of Hedge Fund Holders: 24 

Market Capitalization: $1.35 billion 

Forward PE Ratio: 60.61

The sixth stock on our list of best small-cap stocks is Fastly, Inc. (NASDAQ:FSLY).

TheFly reported on January 16 that Citi analyst Fatima Boolani lowered the price target on FSLY to $10 from $12 and maintained a Neutral rating. The adjustment was made as part of Citi’s 2026 outlook for the infrastructure software group, with the firm expecting the sector’s momentum from 2025 to carry into the new year.

Separately, on January 5, RBC Capital raised its price target on Fastly, Inc. (NASDAQ:FSLY) to $10 from $9 and maintained a Sector Perform rating. According to the firm, companies that are positioned to promote enterprise AI adoption may see additional AI-related tailwinds in 2026. Despite cautious early-2026 forecasts from management teams, RBC stated that enterprise investment appeared to be stabilizing in several sectors, with generative AI driving innovation.

Fastly, Inc. (NASDAQ:FSLY) is a U.S. cloud computing and edge-infrastructure company that provides high-performance content delivery network (CDN), edge computing, security, and web-performance services.

Page 6 of 11