
Akamai Technologies (AKAM) Stock Forecast & Price Target
Akamai Technologies (AKAM) Analyst Ratings
Bulls say
Akamai Technologies has demonstrated significant growth in its security segment, which now constitutes approximately 53% of total revenue and is driven by strong demand for solutions like Guardicore as enterprises become increasingly wary of cybersecurity threats; this segment grew 14% year-over-year to reach $535 million. The company's overall revenue rose by 3% in constant currency, surpassing targets, while its research and development expenditures also increased by 14% year-over-year, highlighting a commitment to innovation and growth. Furthermore, significant growth in annual recurring revenue (ARR) for Guardicore and API services—31% and above guidance estimates, respectively—indicates a robust demand for Akamai's advanced security offerings amidst a challenging digital landscape.
Bears say
The financial outlook for Akamai Technologies is negatively impacted by a decline in earnings per share (EPS), which fell 2% year-over-year to $1.66, and is projected to decline further by 7% to 1% in CY25, indicating continued pressure on profitability. Additionally, the company's delivery segment is forecasted to experience a significant decline of approximately 10% in CY25, further exacerbated by factors such as legal uncertainties surrounding TikTok and competitive pressures from Edgio. Moreover, while the cloud segment, which constitutes 16% of total revenue, is expected to grow by 15%, this growth rate has decreased from 25% in CY24 and remains below consensus estimates, signaling weakening momentum in this important area.
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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