
Akamai Technologies (AKAM) Stock Forecast & Price Target
Akamai Technologies (AKAM) Analyst Ratings
Bulls say
Akamai Technologies reported a 6% increase in revenue for the second quarter in constant currency, exceeding expectations and prompting management to raise its full-year guidance, which now includes anticipated revenue from TikTok. The company's Security segment experienced a 10% growth, while the Compute segment grew by 13%, reflecting robust demand in cloud infrastructure services. Additionally, management anticipates a significant acceleration in growth within its CIS business driven by substantial contracts, alongside a projected annual increase of 30-35% in revenue from Zero-trust enterprise and API security solutions for 2025.
Bears say
Akamai Technologies has experienced stagnation in its content delivery segment, with sequential growth remaining flat for three consecutive quarters, raising concerns about future revenue performance. The company's compute growth projections for 2025 may fall short of their 15% target due to potential downward adjustments in revenue expectations and competition impacting pricing power. Additionally, challenges such as rising bandwidth costs and the trend of large customers developing internal CDN solutions could further compress profit margins and undermine Akamai’s market position.
This aggregate rating is based on analysts' research of Akamai Technologies and is not a guaranteed prediction by Public.com or investment advice.
Akamai Technologies (AKAM) Analyst Forecast & Price Prediction
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