On August 6, Fastly, Inc. declined 8.87% in pre-market trading, trading at $23.7/share, with turnover of $274,900. Despite reporting Q2 results that significantly exceeded expectations, the stock faced heavy selling pressure in a classic buy-the-rumor, sell-the-news pattern.

Fastly reported Q2 adjusted EPS of $0.15, beating the consensus estimate of $0.07 by 114%, representing a swing to profitability from a loss of $0.03 per share in the year-ago quarter. Revenue came in at $183.3 million, surpassing the $173.9 million estimate and reflecting robust year-over-year growth. However, the stock had already surged over 8% on August 5 ahead of the earnings release, as institutions including Raymond James (upgraded to Outperform) and Evercore ISI (Outperform rating, $32 target) had lifted sentiment. With optimistic expectations largely priced in prior to the report, post-earnings profit-taking drove the pre-market decline despite the strong results.

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