5 Worst Cloud Stocks To Buy According to Short Sellers 

3. Fastly Inc. (NASDAQ:FSLY)

Short Interest: 14.65%

On June 5, William Blair analyst Jonathan Ho reiterated a Buy rating on Fastly Inc. (NASDAQ:FSLY) without assigning any price target to the stock. In contrast to William Blair, Raymond James analyst Frank Louthan had upgraded the stock to Outperform from Market Perform on May 8. He also assigned a price target of $23 to the stock. The analyst believes demand for the company’s network capabilities will stay strong going forward. As AI inference takes center stage and requires better data center interconnection, Fastly’s products are going to stay in demand, according to the analyst.

Fastly Inc. (NASDAQ:FSLY) reported its first-quarter fiscal 2026 earnings on May 6. The market reacted negatively to the report, with the stock down over 37% after the announcement. This negative sentiment comes as a surprise, considering the company not only raised its outlook but also had a positive analyst sentiment after the earnings.

For the full year 2026, FSLY has raised its revenue guidance to between $710 million and $725 million. This translates to an EPS of $0.27 to $0.33. Despite competitors raising prices, management intends to stick to the pricing it has already agreed with its customers.

Fastly Inc. (NASDAQ:FSLY) operates a programmable, high-performance edge cloud platform that delivers faster, safer, and more scalable sites and apps to customers. The company is based in San Francisco, California.