AKAMAkamai Technologies presents a balanced investment profile with strong fundamentals and consistent demand in cloud and security services. While recent performance shows a dip, underlying trends and profitability remain robust. Technical indicators offer mixed signals, suggesting potential for short-term volatility.
Akamai is well-positioned within several key growth themes including cloud computing, cybersecurity, and digital content delivery. Its extensive network infrastructure and evolving service offerings are critical enablers for these trends.
Akamai demonstrates strong revenue growth, healthy profitability, and a solid balance sheet. Its P/E ratio is moderate, reflecting investor confidence in its business model and growth prospects.
Akamai's stock is trading near its 52-week low but shows signs of stabilization. Technical indicators are mixed, with some suggesting a potential rebound, while others indicate continued consolidation.
| Factor | Score |
|---|---|
| Cloud Computing Growth | 90 |
| Cybersecurity Demand | 95 |
| Digital Content Delivery | 85 |
| Edge Computing Expansion | 80 |
| Competitive Landscape | 75 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 78 |
| Growth | 75 |
| Balance Sheet Health | 85 |
| Cash Flow | 88 |
| Factor | Score |
|---|---|
| Trend Analysis | 60 |
| Momentum | 65 |
| Moving Averages | 70 |
| Support & Resistance | 75 |
| Volume | 70 |
Consistent Earnings Beats
Akamai Technologies, Inc. (AKAM) has exceeded earnings per share (EPS) estimates in the last four reported quarters, with positive surprises ranging from 2.2% to 9.86%.
Reasonable P/E Ratio
The trailing Price-to-Earnings (P/E) ratio of 27.08 is within a reasonable range, especially considering the company's consistent profitability and position in the cloud and security market.
Recent Underperformance (6M/1Y)
The stock has experienced a significant decline of -19.02% over the last 6 months and -16.77% over the past year, indicating recent market weakness or company-specific challenges.
Rising Quarterly P/E
The quarterly P/E ratio has seen a significant increase, with Q1 2025 at 93.0, which could suggest the stock is becoming overvalued on a forward-looking basis.
August 2025
8
Next Earnings Date
H: $1.58
A: $1.53
L: $1.28
H: 1.03B
A: 1.02B
L: 1.01B
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.
100.33 USD
The 39 analysts offering 1 year price forecasts for AKAM have a max estimate of 135.00 and a min estimate of 63.00.