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No. of Recommendations: 53
Hey Fools,

So Fastly rose to become my top stock. But I have some issues that are bugging me and I very likely will trim my position today.

1. I thought the Press Release was vague and lacked candor. For example, why couldn't they just name ByteDance, the owner of TikTok? Why not tell us which other customers are using the service less? How many is a "few" other customers? Compared to Cloudflare, who has elite communication and immediately issues bold, clear, timely press releases, I find this unimpressive. I would have preferred greater clarify, specificity and confidence.

2. Insider Sales. I rarely care about this. When a stock runs up it makes sense for insiders to cash out as if you can snag 10,000,000 - that is life changing money. Might as well do it, even if you think better days are ahead. And if you own, say, 300,000 shares, selling 20,000 is not that big of a deal. And yes I get that most of these are pre-planned deals. Reed Hastings of Netflix has sold from day one and the stock has gone up exponentially. I get it. That said, Bergman sure seems to be unloading heavily despite big roll-outs coming in 2021. Would ONE big unload per month not suffice? Surely they must get the "optics" of big sales before this pre-announcement are not ideal.

https://finance.yahoo.com/quote/FSLY/insider-transactions/

3. Cloudflare is innovating at high speeds as Fastly just made a big acquisition. I prefer the innovator to the acquirer. But by all accounts the last purchase was a good one.

4. I made a list of the CEOs that I've followed here and though Bixby is obviously a fantastic success compared to the average bear, he has not been the key man from day one. He has never run a public company before. He was a venture capitalist. And I just don't feel he possesses the gravitas or pedigree of Prince, Yuan, Lawson, Green, Lutke, McKinnon.

His answers in this interview linked below feel strained. She asks if he has evidence that TikTok is not a secure app. Should be simple "No." Instead he gives a long ramble that would make a politician proud. It's borderline cringe-inducing, even though the basic idea of his thoughts are fine. And earlier he refers to their clients as "beacons of hope." Oy vey.

https://www.msn.com/en-us/news/other/fastly-ceo-joshua-bixby...

I can't find it now but I watched a presentation he did at a conference where he was dropping f-bombs left and right and although I liked his core message in the speech, about building winning cultures, I just can't see the other CEOs mentioned above opening up potty mouths. And I say this as a fella with an appalling mouth.

*** ***

If the tech is as good as our tech experts feel there's still a lot to like. I've just been having my spider senses riled on this. I felt the same about Cloudflare over some things but after a deeper dive all my concerns were allayed.

I feel like the monumental overachievement in top stocks - even ones many abandoned (SHOP, TTD, TWLO) - are driven by the elite of the elite leaders. And I just don't see that here. But I realize the stock and company have done incredibly well. I'm only saying this based on watching interviews and reading corporate communications.

For me Fastly, for now, goes into the lower conviction bucket.

BroadwayDan
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