Latest news with #ToddNightingale
Yahoo
09-07-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Fastly's Q1 Earnings Call
Fastly's first quarter was marked by positive momentum, driven by gains with enterprise customers and notable progress in product diversification. Management credited strong new customer acquisition in strategic verticals such as travel, financial services, and retail, as well as cross-sell momentum in its security and compute portfolio. CEO Todd Nightingale highlighted the impact of Fastly's revamped go-to-market strategy and increased packaging simplicity, with over half of customers now using more than one product line. Nightingale explained, 'Our platform strategy continues to yield results as now almost half of our customers leverage two or more Fastly product lines, generating three quarters of our revenue.' Is now the time to buy FSLY? Find out in our full research report (it's free). Revenue: $144.5 million vs analyst estimates of $137.9 million (8.2% year-on-year growth, 4.8% beat) Adjusted EPS: -$0.05 vs analyst estimates of -$0.06 ($0.01 beat) Adjusted Operating Income: -$5.85 million vs analyst estimates of -$8.76 million (-4% margin, 33.3% beat) Operating Margin: -26.4%, up from -34.6% in the same quarter last year Customers: 3,035 Net Revenue Retention Rate: 100%, down from 102% in the previous quarter Market Capitalization: $1.06 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Param Singh (Oppenheimer) asked about the drivers of network demand and security adoption; CEO Todd Nightingale indicated that strategic vertical traction and cross-sell initiatives are expanding, but security penetration remains early, especially for DDoS and bot mitigation products. Jonathan Ho (William Blair) inquired about compute product growth and macro conservatism; Nightingale explained that compute traction was driven by dynamic user experiences in travel and technology, while guidance remains cautious amid macro uncertainties despite steady demand patterns. Sanjit Singh (Morgan Stanley) sought clarity on the surge in remaining performance obligations (RPO); Nightingale cited strategic renewals, sales incentives for larger commitments, and packaging solutions as key contributors, with CFO Ron Kisling highlighting improved senior-level customer engagement. Rishi Jaluria (RBC) asked about potential risks tied to TikTok and pricing trends; Nightingale described ongoing global partnership optimism with TikTok and noted that pricing declines have moderated, providing tailwinds for future results. Rudy Kessinger (D.A. Davidson) pressed on slow security revenue growth and the permanence of share gains in the top 10 customers; Nightingale acknowledged early-stage adoption for bot and DDoS, targeting mid-teens growth, and said recent share gains appear durable, driven by improved customer engagement. In the next few quarters, the StockStory team will be monitoring (1) sustained momentum in security and compute product adoption, (2) further progress in revenue diversification outside the top 10 customers, and (3) continued improvements in pricing stability and gross margin. The company's ability to convert pipeline visibility into realized revenue and to execute on high-touch sales strategies will also serve as important indicators of operational progress. Fastly currently trades at $7.35, up from $6.01 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Arista Networks (NYSE:ANET) Expands AI-Driven Product Line With Key Acquisitions And Upgrades
Arista Networks recently unveiled an array of AI-driven enterprise products alongside acquiring the VeloCloud SD-WAN portfolio from Broadcom. This strategic expansion could have supported the company's share price performance, which surged by 23% over the last quarter. During the same period, Arista appointed Todd Nightingale as President and COO, and initiated a substantial share buyback program. These events likely added weight to the broader upward market trend, driven by tech sector gains and overall economic optimism, exemplified by a 14% increase in the market over the past year. Every company has risks, and we've spotted 1 weakness for Arista Networks you should know about. This technology could replace computers: discover the 26 stocks are working to make quantum computing a reality. The recent developments at Arista Networks, including its AI product expansion and acquisition of the VeloCloud SD-WAN portfolio, have potential to impact the company's long-term narrative positively. These initiatives are aligned with the company's strategic focus on cloud and AI adoption, which could drive sustainable network growth and bolster Arista's revenue and earnings projections. The introduction of new leadership and a significant share buyback program could reinforce investor confidence, potentially leading to a more resilient financial performance. Over the past five years, Arista Networks has delivered a very large total return of 650.81%, underscoring its strong historical performance. In contrast, the company's recent performance in the past year didn't keep pace with the U.S. Communications industry's 42.9% rise, underperforming relative to both the industry and the broader market increase of 13.9%. This discrepancy highlights the importance of evaluating both short-term movements and longer-term trends. The integration of AI-driven products is anticipated to influence revenue and earnings growth positively. Analysts suggest that the growing demand for scalable Ethernet-based networking and the company's expansion into high-margin software services are key contributors to its future outlook. In the context of the price target, the current share price of US$94.97 reflects a discount to the consensus fair value estimate of US$105.64, indicating potential upside according to market analysts. However, variability among analyst opinions, with bullish targets as high as US$130, suggests ongoing debate about Arista's prospective valuation. Click here to discover the nuances of Arista Networks with our detailed analytical financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ANET. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
20-06-2025
- Business
- Yahoo
Arista Networks (ANET) Names Todd Nightingale as New President and Chief Operating Officer
Arista Networks Inc (NYSE:ANET) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, the company announced the appointment of Todd Nightingale as its President and Chief Operating Officer, effective July 1, 2025. Nightingale brings extensive industry experience, having served as CEO of Fastly and held key leadership roles at Cisco Systems, including overseeing its Enterprise Networking and Cloud division. His expertise is expected to contribute significantly to Arista's growth. A data center filled with the latest servers and networking equipment representing the company's cutting edge security infrastructure. Under his employment agreement, Nightingale will receive a $350,000 annual salary, a prorated 2025 bonus, and eligibility for discretionary bonuses in 2026. His compensation package includes $30 million in restricted stock units (RSUs) and $2 million in performance-based stock units (PSUs), pending corporate approvals and vesting requirements. Arista continues strengthening its leadership team with strategic appointments as it reports 22.3% revenue growth over the past year. Nightingale's role is set to accelerate Arista's innovation and operational efficiency in the networking space. Arista Networks Inc. (NYSE:ANET) provides client-to-cloud networking solutions for AI, data center, campus, and routing applications. Its offerings include the EOS platform, network applications, and support services, delivered through both direct and partner channels. While we acknowledge the potential of ANET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Healthcare Stocks to Buy Now and 10 Stocks Analysts Are Upgrading Today. Disclosure: None.
Yahoo
11-03-2025
- Business
- Yahoo
Fastly, Inc. (NYSE:FSLY) is a favorite amongst institutional investors who own 66%
Significantly high institutional ownership implies Fastly's stock price is sensitive to their trading actions The top 14 shareholders own 51% of the company Insiders have sold recently Every investor in Fastly, Inc. (NYSE:FSLY) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 66% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk). Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. In the chart below, we zoom in on the different ownership groups of Fastly. Check out our latest analysis for Fastly Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors have a fair amount of stake in Fastly. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Fastly's historic earnings and revenue below, but keep in mind there's always more to the story. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Fastly is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 11% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.5% and 5.6%, of the shares outstanding, respectively. Furthermore, CEO Todd Nightingale is the owner of 1.1% of the company's shares. A closer look at our ownership figures suggests that the top 14 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own some shares in Fastly, Inc.. As individuals, the insiders collectively own US$66m worth of the US$945m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Fastly. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Fastly that you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
