Shares of Fastly, Inc. (NYSE: FSLY) plummeted 5% during Tuesday's intraday trading session, following a significant price target cut by Piper Sandler. The downward pressure on the stock persisted despite the company's announcement of new DDoS protection capabilities.

Piper Sandler analyst James Fish lowered the firm's price target on Fastly to $6 from $9, maintaining a Neutral rating on the shares. This substantial reduction in the price target, representing a 33% decrease, likely contributed to investor concerns about Fastly's near-term prospects and growth potential.

In an attempt to bolster its market position, Fastly announced key updates to its DDoS Protection service, introducing Attack Insights to provide deeper visibility into attack mitigation. The new features aim to help organizations validate the efficacy of their automated DDoS protection and gain real-time insights into DDoS events. However, this positive development appears to have been overshadowed by the analyst's bearish view, as reflected in the stock's sharp decline.