Fastly, Inc.

Fastly, Inc. (NYSE: FSLY) is a company that creates edge cloud systems, infrastructure as a service (IaaS) category that allows developers to create, secure, and deliver digital experiences at the Internet's edge. The company has developed a serverless edge cloud architecture that is programmable and supports agile software development from the bottom up. 

Key Highlights

• The company reported YoY growth of 23% in revenues to USD 97.72 million in Q3FY21 (ended December 31, 2021) compared to USD 82.65 million in Q4FY20.
• However, FSLY's net loss expanded to USD 57.52 million during Q4FY21 vs. USD 45.70 million in Q4FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 527.86 million and total debt of USD 976.62 million.
• FSLY's Q4FY21 cash cycle of 39 days is relatively higher than the industry median of 31 days.
• Its ROE was -5.7% in Q4FY21 vs. the industry median of 2.7%.
• Negative Net Margin of 58.9% whereas Peer’s Median stood at 6.4%.
• On February 08, 2022, FSLY launched the edge deployment option for the Fastly Next-Gen WAF (powered by Signal Sciences). The integration of Signal Sciences' award-winning trusted web application firewall (WAF) technology with Fastly's edge cloud network has reached a significant milestone.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock has made a new 52-week low today.
• FSLY's stock price decreased 50.20% and 55.39% in the past six and nine months, respectively.

Technical Price Chart (as of February 17, 2022, at 03:04 PM ET). Analysis by Kalkine

Conclusion: Considering the topline growth, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the current price of USD 19.5106, down 32.56%, as of February 17, 2022, at 03:04 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.

Virgin Galactic Holdings, Inc.

Virgin Galactic Holdings, Inc. (NYSE: SPCE) is a vertically integrated aerospace and space travel corporation that uses advanced air and space vehicles to pioneer human spaceflight for private individuals and researchers. It is developing a spaceflight system that will connect the globe to space travel while also providing a transforming experience.

Key Highlights

• The company reported significant growth in net revenues to USD 2.88 million in 9MFY21 (ended September 30, 2021) compared to USD 65 thousand in 9MFY20.
• SPCE's net loss reduced to USD 272.10 million during 9MFY21 from USD 540.77 million in 9MFY20.
• As of September 30, 2021, the company had cash and cash equivalents (including short-term investments) of USD 732.01 million and no outstanding debt.
• Its ROE was -148.2% in FY20 vs. the industry median of 5.6%.
• On February 15, 2022, SPCE stated that general public ticket sales would commence on February 16, 2022, giving the public the option to purchase one of the first spaceflight reservations and join the exclusive Future Astronauts club.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 7.58 to USD 57.51.
• SPCE's stock price decreased 48.71% and 63.24% in the past three and six months, respectively.

Technical Price Chart (as of February 17, 2022, at 03:35 PM ET). Analysis by Kalkine

Conclusion: The company's bottom-line performance deteriorated in 9MFY21 compared to the previous comparable period. Given the lackluster fundamentals, a significant correction in the stock price in the past six months, and lack of visibility in profitability, we recommend an "Watch" rating on the stock at the current price of USD 8.915, as of February 17, 2022, at 03:35 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.