13 Best AI Stocks to Buy Under $10

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6. Fastly Inc. (NYSE:FSLY)

Stock Price as of May 12: $7.68

Number of Hedge Fund Holders: 27

Fastly Inc. (NYSE:FSLY) is a software application company that operates an edge cloud platform for processing, serving, and securing applications. Its solutions enable developers to build, secure, and deliver digital experiences at the edge of the internet. It also offers network services to speed up and optimize the delivery of web and application traffic. While the stock has dropped by about 36% year to date, analysts at Piper Sandler have reiterated a Neutral rating and raised the price target to $7 from $6.

The price hike comes on the heels of the leader in global edge cloud platforms delivering impressive first quarter fiscal 2025 results and raising its full year guidance due to strong demand for AI-powered solutions. Revenue in the quarter was up 8% year over year to $144.5 million as product package deals more than doubled and new logo packages grew by 80%.

Fastly Inc.’s (NYSE:FSLY) net loss shrank to $39.1 million as its positive free cash flow more than quadrupled to $8.2 million compared to $2.2 million of negative cash flow as of the same quarter last year. The better-than-expected results can be attributed to Fastly’s revamped go-to-market strategy.

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