Akamai Technologies
AKAM
$126.57
+10.67%
Akamai Technologies operates a content delivery network (CDN) and provides cybersecurity and cloud computing services, leveraging over 350,000 servers across 4,350 points of presence globally. As a dominant player in the CDN market, it has successfully pivoted to higher-growth areas, with cybersecurity and cloud services now surpassing its legacy delivery business in revenue. The current investor narrative centers on Akamai's strategic shift toward offering computing hardware as a service, particularly for large language model providers like Anthropic, which has driven recent earnings beats and analyst upgrades. However, the stock has experienced significant volatility amid broader tech sell-offs and inflation concerns, creating debate around the sustainability of its AI-driven growth.…
AKAM
Akamai Technologies
$126.57
Related headlines
AKAM 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Akamai Technologies's 12-month outlook, with a consensus price target around $164.54 and implied upside of +30.0% versus the current price.
Average Target
$164.54
6 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
6
covering this stock
Price Range
$101 - $165
Analyst target range
Akamai is covered by 6 analysts, with a consensus leaning bullish. The average target price is not explicitly provided, but based on the estimated EPS of $9.385 and a forward P/E of 15.8x, the implied target is approximately $148.28, representing about 31% upside from the current price of $113.17. The distribution of ratings includes 4 Buy/Outperform equivalents, 1 Hold, and 1 Sell, indicating a generally positive sentiment. The high EPS estimate of $9.636 implies a target of $152.25, while the low estimate of $9.144 implies $144.48, suggesting a relatively tight range of about 5% around the average. This tight spread indicates strong conviction among analysts regarding near-term earnings. Recent ratings actions have been largely positive, with upgrades from DA Davidson (Buy) and reaffirmations from Evercore (Outperform), Baird (Outperform), and Susquehanna (Positive) following the Q4 2025 earnings beat. The absence of downgrades suggests that the AI-driven narrative is gaining credibility. However, the limited coverage (6 analysts) is typical for a mid-cap stock, and the lack of a formal consensus target price from a broader set of analysts means investors should rely on the implied valuation from EPS estimates.
AKAM Technical Analysis
Akamai's 1-year price change of +42.4% reflects a strong uptrend, but the stock has pulled back sharply from its 52-week high of $165.45, currently trading at $113.17—approximately 68% of its 52-week range. This positioning near the lower end of the range suggests the stock is in a corrective phase after a prolonged rally, potentially offering a value entry if the underlying fundamentals remain intact. The 52-week low of $69.78 provides a clear support level, while the high represents resistance that would need to be reclaimed to signal a resumption of the uptrend. Short-term momentum is decisively bearish, with a 1-month price change of -29.4% and a 3-month change of -4.1%, indicating a sharp deceleration from the longer-term trend. The divergence between the 1-month and 1-year trends suggests a significant pullback that could be either a mean-reversion opportunity or the start of a deeper correction, depending on broader market conditions. The stock's beta of 0.633 implies it is less volatile than the market, which may provide some cushion during selloffs but also limits upside participation in rallies. The 52-week high of $165.45 and low of $69.78 define a wide trading range, with the current price near the midpoint. A breakout above $165.45 would signal a resumption of the uptrend and could attract momentum buyers, while a breakdown below $69.78 would indicate a structural deterioration. Given the beta of 0.633, the stock's volatility is about 37% lower than the S&P 500, which may appeal to risk-averse investors but also means it may lag during market recoveries.
Beta
0.63
0.63x market volatility
Max Drawdown
-30.0%
Largest decline past year
52-Week Range
$70-$165
Price range past year
Annual Return
+57.0%
Cumulative gain past year
| Period | AKAM Return | S&P 500 |
|---|---|---|
| 1m | -10.8% | +0.8% |
| 3m | +15.5% | +9.6% |
| 6m | +43.6% | +7.4% |
| 1y | +57.0% | +20.2% |
| ytd | +48.7% | +9.3% |
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AKAM Fundamental Analysis
Revenue has grown steadily, with the most recent quarter (Q4 2025) reporting $1.095 billion, up 7.4% year-over-year from $1.020 billion in Q4 2024. The multi-quarter trend shows accelerating growth: Q1 2025 revenue was $1.015 billion (+2.8% YoY), Q2 2025 was $1.043 billion (+6.5% YoY), and Q3 2025 was $1.055 billion (+5.0% YoY). The sequential acceleration in Q4 suggests the AI infrastructure push is gaining traction, though the overall growth rate remains modest relative to high-growth peers. Revenue segments are not broken out in detail, but the company's shift toward cloud computing and cybersecurity is likely driving the uptick. The company is profitable, with net income of $85.1 million in Q4 2025 and a trailing twelve-month net income of approximately $452 million. Gross margin has been relatively stable around 54-59%, with Q4 2025 at 54.6%, slightly below the 59.3% in Q4 2024, indicating some margin compression likely due to higher infrastructure costs. Operating margin improved to 13.8% in Q4 2025 from 14.5% in Q4 2024, but net margin fell to 7.8% from 13.7% due to higher interest expenses and other charges. The balance sheet shows a debt-to-equity ratio of 1.39, which is elevated but manageable given the company's cash generation. Free cash flow (FCF) for Q4 2025 was $161.9 million, and trailing twelve-month FCF was $699.3 million, representing a FCF yield of approximately 5.5% based on the current market cap. The current ratio of 2.29 indicates ample liquidity, and ROE of 9.1% is reasonable but not exceptional. The company has been actively repurchasing shares, with $300 million in buybacks in Q2 2025, signaling management's confidence in intrinsic value.
Quarterly Revenue
$1.1B
2025-12
Revenue YoY Growth
+0.07%
YoY Comparison
Gross Margin
+0.54%
Latest Quarter
Free Cash Flow
$699265000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is AKAM Overvalued?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 28.1x, while the forward P/E is 15.8x, implying the market expects significant earnings growth over the next year. The large gap between trailing and forward P/E suggests that the market is pricing in a sharp earnings recovery, likely driven by the AI infrastructure opportunity. Compared to the software-infrastructure industry, Akamai's trailing P/E of 28.1x is above the industry average of approximately 22x, representing a 28% premium. This premium may be justified by the company's dominant CDN market position and its pivot to higher-growth AI and cybersecurity services, but it also leaves little room for error. Historically, Akamai's trailing P/E has ranged from about 19x to 37x over the past five years. The current 28.1x is near the middle of that range, suggesting it is neither excessively expensive nor cheap relative to its own history. The forward P/E of 15.8x, however, is near the lower end of the historical forward range, indicating that the market may be undervaluing the earnings power if the AI strategy delivers. The PEG ratio of -4.07 is negative due to negative earnings growth expectations in the near term, but this is likely a distortion from one-time items; the forward P/E compression suggests analysts expect a rebound.
PE
28.1x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 19x~66x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.9x
Enterprise Value Multiple

