Shares of edge cloud platform Fastly (NYSE:FSLY) jumped 7.4% in the afternoon session after RBC Capital raised its price target on the stock to $20 from $12 as investor meetings with management provided reassurance about the company's improving execution.

The stock also reached a 52-week high. The renewed confidence from RBC followed the company's participation in an institutional investor conference where it outlined its strategy. Fastly noted that edge cloud platforms were evolving to include security and compute services, which were driving strong revenue growth and record margins. The company also pointed to product expansion and increased AI-driven traffic as key performance drivers. This positive outlook built on recently reported fourth-quarter results, where both revenue and earnings per share significantly exceeded analyst expectations.

Is now the time to buy Fastly? Access our full analysis report here, it’s free.

Fastly’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 13 days ago when the stock dropped 3.9% on the news that investor fears over artificial intelligence disrupting the software industry sparked a broad sell-off. The anxiety stemmed from the rapid adoption of new 'agentic AI' tools, which some investors believed could dismantle traditional Software-as-a-Service (SaaS) business models. This 'AI Panic' led to indiscriminate selling across the sector. The market move reflected growing concerns about the downside of the AI boom for established software companies.

Fastly is up 105% since the beginning of the year, and at $20.86 per share, has set a new 52-week high. Investors who bought $1,000 worth of Fastly’s shares 5 years ago would now be looking at an investment worth $294.17.

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.