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Akamai Technologies Inc - Stock Quote AKAM

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Morningstar's Akamai Technologies Inc Stock Analysis

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Akamai Faces a Confluence of Headwinds as It Reduces Full-Year Guidance

Matthew Dolgin, CFA Equity Analyst

Analyst Note

| Matthew Dolgin, CFA |

Akamai’s first-quarter results were within the company’s guidance, but the firm saw business softening toward the end of the quarter. Combined with macroeconomic and geopolitical issues that the company now expects will dent results at least through 2022, the firm reduced its full-year guidance on the top and bottom lines. The business softening is unsurprising as the world moves past the pandemic, and our long-term view of the firm has not changed. Despite the stock dropping more than 10% in after-hours trading, shares remain overvalued relative to our $85 fair value estimate, which we are maintaining.

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Akamai Technologies Inc's Company Profile

Business Description

Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,000 points of presence in more than 1,000 cities worldwide. Its customers generally include media companies, which stream video content or make video games available for download, and other enterprises that run interactive or high-traffic websites, such as e-commerce firms and financial institutions. Akamai also has a significant security business, which is integrated with its core web and media businesses to protect its customers from cyber threats.

145 Broadway
Cambridge, MA, 02142
T +1 617 444-3000
Sector Technology
Industry Software - Infrastructure
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Classic Growth
Employees 8,700

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