
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 increasing by 10% and the Compute segment rising by 13% in constant currency during the second quarter, reflecting strong demand for cloud infrastructure services. The company has also raised its full-year revenue guidance, incorporating anticipated domestic revenue from TikTok for the upcoming quarters, indicating confidence in its growth trajectory. Furthermore, the expected acceleration in revenue from significant contracts and the strong outlook for Zero-trust enterprise and API security solutions bolsters Akamai's positive financial outlook, potentially leading to higher revenue growth than previously anticipated.
Bears say
Akamai Technologies's content delivery segment has shown stagnation, remaining flat for three consecutive quarters, and facing downward adjustments in revenue growth expectations for 2025 due to potential underperformance against a target goal. Additionally, decreases in profit margins can occur if Akamai fails to reduce bandwidth costs effectively, further compounding pressure on financial performance amid a backdrop of long-term price declines of around 25% annually in the CDN industry. The competitive landscape is also becoming increasingly challenging, with significant customers developing their own CDN capabilities, resulting in continued loss of business for Akamai as the market experiences contractions driven by competitors exiting the space.
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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