Fastly, Inc. (FSLY) saw its stock price soar 7.29% during intraday trading on Friday, continuing its positive momentum from the previous session.

The surge is driven by the company's better-than-expected fourth-quarter financial results, which showed a significant narrowing of its net loss and revenue growth. Fastly reported a quarterly net loss of $15.5 million, a substantial improvement from the $32.9 million loss in the same period last year, while revenue increased to $172.6 million. The company also issued solid guidance for the current period.

Analysts point to increased traffic from artificial intelligence applications, such as large-language models, as a key growth driver for Fastly's content delivery network services. This positive earnings report has led to analyst upgrades and increased price targets, fueling investor optimism about the company's path toward improved profitability.