
Akamai Technologies (AKAM) Stock Forecast & Price Target
Akamai Technologies (AKAM) Analyst Ratings
Bulls say
Akamai Technologies has demonstrated robust growth across its key segments, with the Security segment and Compute segment reporting increases of 10% and 13% in constant currency, respectively, in the second quarter. The company raised its full-year revenue guidance, fueled by the inclusion of domestic revenue from TikTok and promising prospects from large contracts in cloud infrastructure services, indicating accelerating growth into 2026. Furthermore, management anticipates a significant revenue increase of 30-35% year-over-year for its zero-trust enterprise and API security solutions, suggesting a positive trajectory driven by enhanced adoption of newer security offerings.
Bears say
Akamai Technologies's content delivery segment has displayed stagnation, being flat for three consecutive quarters, while compute revenue growth is projected to fall short of its 15% target for 2025, indicating underlying weakness in the business. Furthermore, there are concerns regarding decreasing profit margins if Akamai fails to reduce bandwidth costs comparably, compounded by a shrinking CDN market characterized by long-term price declines of approximately 25% annually and a competitive landscape marked by significant exits and bankruptcies. Lastly, the company's valuation has been adjusted downward, aligning with peer market multiples, reflecting a lack of confidence in future growth, particularly with the presence of customers transitioning to internal CDN capabilities.
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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