Shares of Fastly, Inc. (FSLY) plummeted 5% in intraday trading on Tuesday, following a significant price target cut by Piper Sandler. The edge cloud platform provider's stock took a hit after analyst James Fish lowered the firm's price target on Fastly from $9 to $6, while maintaining a Neutral rating on the shares.

The downward revision in the price target appears to have spooked investors, leading to a sell-off in Fastly's stock. This adjustment suggests that Piper Sandler may have concerns about Fastly's near-term growth prospects or valuation, despite maintaining a neutral stance on the company's overall outlook.

In contrast to the negative market reaction, Fastly announced key updates to its DDoS Protection service on the same day. The company unveiled new capabilities that provide deeper visibility into attack mitigation, aiming to help organizations validate the efficacy of their automated DDoS protection. However, this positive development seems to have been overshadowed by the price target reduction, as investors focused more on the potential valuation concerns raised by the analyst's action.