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Morningstar

Akamai Technologies Inc AKAM Stock Quote

Morningstar Rating
| Rating as of

NASDAQ: AKAM

Last close prices updated as of Feb 06, 2023, 4:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 87.49
  • Sector Technology
  • Industry Software - Infrastructure
  • Investment Style Mid Blend
  • Day Range 87.06  –  88.73
  • Year Range 76.28  –  123.25
  • Market Cap 13.7571 Bil
  • Volume / Avg 920,053.0 /  1.4 Mil
  • Price / Sales 3.95
  • Price / Book 3.25
  • Forward Div Yield —
  • Trailing Div Yield —

Morningstar‘s Stock Analysis AKAM

Valuation
Currency in —
Is it the right time to buy or sell?
Find out with Morningstar Investor
Is it the right time to buy or sell?
Find out with Morningstar Investor

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Shifts to Security and Compute Will Make Akamai’s Business Stronger Over Time

Matthew Dolgin Equity Analyst

Business Strategy and Outlook

| Matthew Dolgin |

Facing stagnation in its core content delivery network business as its biggest media customers, such as Netflix, retreated in favor of bringing their CDNs in-house, Akamai has done an excellent job of pivoting to areas with growing demand, offering top-rate service, and making smart acquisitions. The key to Akamai's recent success has been the cybersecurity solutions it now offers. As the rest of its business struggles to produce revenue growth, security solutions have been growing about 25% annually and exceeded $1.3 billion in sales in 2021—nearly 40% of total sales. We think management is focusing on the right things and developing great products, but we think the decline in the legacy CDN business will remain a drag.

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Key Statistics AKAM

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Company Profile AKAM

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 cyberthreats.

Contact
145 Broadway
Cambridge, MA, 02142
Sector Technology
Industry Software - Infrastructure
Employees 8,700

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FAQs for Akamai Technologies Inc Stock

No. AKAM does not currently have a forward dividend yield.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

AKAM’s market cap is 13.76 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

AKAM’s stock style is Mid Core.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

AKAM’s price/sales is 4.03.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

AKAM’s price/forward earnings is 15.27.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

AKAM’s price/book is 3.25.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See AKAM’s valuation ratios compared to the Market Index.

AKAM’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare AKAM’s historical performance against its industry peers and the overall market.