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Founded in 1998 and headquartered in Cambridge, Massachusetts, Akamai Technologies, Inc. (AKAM) is a leading cloud services and content delivery company specializing in cybersecurity, edge computing, and web performance optimization. With a market cap of $15 billion, Akamai plays a crucial role in the digital infrastructure, ensuring secure and efficient online experiences for businesses and users worldwide.
Shares of Akamai Technologies have significantly underperformed the broader market over the past 52 weeks. AKAM has dipped 12.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 22.3%. However, in 2025, AKAM is up 4.6%, compared to SPX’s 4% increase on a YTD basis.
Zooming in further, AKAM has also lagged behind the iShares Expanded Tech-Software Sector ETF’s (IGV) 22.4% return over the past 52 weeks and 6.6% YTD gains.
Akamai Technologies' shares tumbled 14.4% following the release of its Q3 earnings on Nov. 7. The company reported revenue of $1 billion, marking a 4.1% year-over-year increase and aligning with analyst estimates of $999.5 million. Adjusted EPS came in at $1.59, matching consensus forecasts. EBITDA reached $426.3 million, slightly exceeding expectations by 1%. However, Q4 revenue guidance of $1.01 billion fell short of the projections.
AKAM is expected to release its fiscal Q4 earnings results after the market closes on Thursday, Feb. 20. For fiscal 2024, which ended in December, analysts expect AKAM’s EPS to decline 3.6% year-over-year to $4.28. The company’s earnings surprise history is disappointing. It met the consensus estimates in one of the last four quarters while missing on three other occasions.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” four “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago when the stock had 12 “Strong Buy” ratings.
On Jan. 22, Craig-Hallum analyst Jeff Van Rhee assigned a “Buy” rating to Akamai.
The mean price target of $114.84 represents a premium of 14.8% to AKAM’s current levels. The Street-high price target of $140 implies potential upside of 40%.
