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Akamai Technologies Inc (AKAM)

Upturn stock ratingUpturn stock rating
$80.6
Delayed price
upturn advisory
PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK

Upturn Advisory Summary

04/01/2025: AKAM (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -29.31%
Avg. Invested days 44
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 04/01/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 12.10B USD
Price to earnings Ratio 24.62
1Y Target Price 105.04
Price to earnings Ratio 24.62
1Y Target Price 105.04
Volume (30-day avg) 3578827
Beta 0.68
52 Weeks Range 75.50 - 108.18
Updated Date 03/31/2025
52 Weeks Range 75.50 - 108.18
Updated Date 03/31/2025
Dividends yield (FY) -
Basic EPS (TTM) 3.27

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 12.65%
Operating Margin (TTM) 15.65%

Management Effectiveness

Return on Assets (TTM) 3.92%
Return on Equity (TTM) 10.66%

Valuation

Trailing PE 24.62
Forward PE 12.77
Enterprise Value 15070940756
Price to Sales(TTM) 3.03
Enterprise Value 15070940756
Price to Sales(TTM) 3.03
Enterprise Value to Revenue 3.78
Enterprise Value to EBITDA 11.94
Shares Outstanding 150318000
Shares Floating 147201453
Shares Outstanding 150318000
Shares Floating 147201453
Percent Insiders 1.87
Percent Institutions 98.17

Analyst Ratings

Rating 4.24
Target Price 113.74
Buy 4
Strong Buy 14
Buy 4
Strong Buy 14
Hold 6
Sell 1
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

Akamai Technologies Inc

stock logo

Company Overview

History and Background

Founded in 1998, Akamai Technologies emerged from MIT research on content delivery networks (CDNs). Initially focused on solving internet congestion, Akamai has evolved into a comprehensive cloud services provider.

Core Business Areas

  • Content Delivery: Global network for delivering web content, video, and software applications with high performance and security.
  • Cloud Security: Solutions to protect websites, applications, and APIs from various cyber threats, including DDoS attacks, bot mitigation, and web application firewalls.
  • Edge Compute: Platform enabling developers to run applications closer to users, improving performance and reducing latency.

Leadership and Structure

Akamai is led by CEO Dr. Robert Blumofe. The company has a typical corporate structure with various departments like engineering, sales, marketing, and finance.

Top Products and Market Share

Key Offerings

  • Content Delivery Network (CDN): Akamai's CDN is a core service, distributing content globally. Market share varies, but Akamai is consistently a leader. Revenue from this can't be isolated. Competitors: Cloudflare (NET), Fastly (FSLY).
  • Web Application Firewall (WAF): Akamai's WAF protects web applications from cyberattacks. Competitors: Cloudflare (NET), Imperva, Amazon (AMZN) AWS WAF.
  • DDoS Protection: Akamai provides services to mitigate DDoS attacks. Competitors: Cloudflare (NET), Radware, Imperva.

Market Dynamics

Industry Overview

The cloud services and cybersecurity market is rapidly growing, driven by increased internet traffic, digital transformation, and escalating cyber threats. Demand for CDN and edge computing solutions is increasing.

Positioning

Akamai is a leading player in the CDN and cloud security markets. Its strengths lie in its extensive global network and advanced security technologies.

Total Addressable Market (TAM)

The TAM for CDN, security, and edge compute is estimated to be over $100 billion. Akamai is well-positioned to capture a significant portion of this TAM.

Upturn SWOT Analysis

Strengths

  • Extensive global network
  • Advanced technology
  • Strong brand recognition
  • Large customer base
  • Comprehensive product portfolio

Weaknesses

  • Complex pricing structure
  • Competition from newer, agile players
  • Slower growth compared to cloud-native competitors
  • Integration challenges with legacy systems

Opportunities

  • Expanding edge computing capabilities
  • Growth in cloud security demand
  • Strategic partnerships and acquisitions
  • Adoption of 5G and IoT technologies
  • Increasing demand in emerging markets

Threats

  • Intense competition
  • Rapid technological changes
  • Economic downturns
  • Cybersecurity breaches
  • Consolidation in the cloud market

Competitors and Market Share

Key Competitors

  • CLOU
  • FSLY
  • AMZN

Competitive Landscape

Akamai faces competition from both established players and emerging cloud-native companies. Its extensive network and brand reputation provide advantages, but it needs to innovate to stay ahead.

Major Acquisitions

Linode

  • Year: 2022
  • Acquisition Price (USD millions): 900
  • Strategic Rationale: Expanded Akamai's cloud computing capabilities and provided developers with a simple, affordable platform.

Growth Trajectory and Initiatives

Historical Growth: Data not available due to model cut-off; check latest company filings.

Future Projections: Analyst estimates indicate continued growth in revenue, driven by cloud security and edge computing.

Recent Initiatives: Akamai is investing in edge computing, cloud security, and strategic acquisitions to drive growth.

Summary

Akamai is a well-established leader in content delivery and cloud security, leveraging its extensive global network. While facing competition from agile cloud-native players, the company is strategically investing in edge computing and acquisitions to drive future growth. Akamai should focus on simplifying its pricing and integrating its solutions to enhance customer experience and maintain its competitive edge. The shift to cloud security and edge computing offers significant growth opportunities.

Similar Companies

  • CLOU
  • FSLY
  • AMZN
  • MSFT
  • GOOGL

Sources and Disclaimers

Data Sources:

  • Company Filings (where available)
  • Analyst Reports
  • Industry Research Reports
  • Company Website

Disclaimers:

The information provided is for informational purposes only and should not be construed as financial advice. Market share data is approximate and based on available sources. Financial data relies on estimates and public information.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Akamai Technologies Inc

Exchange NASDAQ
Headquaters Cambridge, MA, United States
IPO Launch date 1999-10-29
Co-Founder, CEO, President & Director Dr. F. Thomson Leighton
Sector Technology
Industry Software - Infrastructure
Full time employees 10700
Full time employees 10700

Akamai Technologies, Inc. engages in the provision of security, delivery, and cloud computing solutions in the United States and internationally. The company offers security solutions that include web application and application programming interfaces (API) protection solutions, which protect web, API, and mobile app traffic from attacks; Bot & Abuse portfolio, which provides solutions to help customers protect against threats; Akamai Account Protector, which offers full account lifecycle protections including the ability to defend against account takeover and opening abuse, adversarial bot protection, protection against credential stuffing, inventory scalping, and hoarding; Akamai Content Protector, which provides solutions designed to stop persistent scrapers from stealing content; API security, which discovers, audits, and monitors API; and microservice and application component protection that analyzes and protects application traffic that moves between application components. It also offers cloud computing services, which include compute, storage, networking, database, and container management services; and Akamai App Platform, provides ready-to-run templates that address challenges in deploying, managing and scaling Kubernetes clusters at scale. In addition, the company offers delivery solutions that include web and mobile performance solutions, which enables dynamic websites and applications, as well as global traffic management, site acceleration, application load balancing, large-scale load testing, and real-user monitoring; and media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

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