Akamai Technologies
AKAM
$105.09
-1.29%
Akamai Technologies operates a content delivery network (CDN) that underpins a significant portion of global internet traffic, and has expanded into cybersecurity and cloud computing services, including edge computing and AI infrastructure. As a market leader in CDN and a growing player in security and cloud, Akamai differentiates itself through its massive distributed network of over 350,000 servers across 4,350 points of presence. The current investor narrative centers on Akamai's strategic pivot toward offering computing hardware as a service, particularly for large language model providers like Anthropic, which has driven a recent earnings beat and a major AI contract win, signaling a successful transformation into a high-growth AI infrastructure player. However, the stock has experienced significant volatility, with a sharp decline in the last three months, raising questions about the sustainability of its growth and valuation.…
AKAM
Akamai Technologies
$105.09
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 $156.78 and implied upside of +49.2% versus the current price.
Average Target
$156.78
0 analysts
Implied Upside
+49.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$93 - $195
Analyst target range
The target price range spans from a low of $93.00 to a high of $195.00, reflecting a wide dispersion of expectations. The high target of $195 assumes that Akamai will successfully capitalize on its AI infrastructure opportunity, potentially leading to accelerated revenue growth and margin expansion. The low target of $93 suggests concerns about competitive pressures, potential margin compression, or a slowdown in the core CDN business. The wide spread indicates high uncertainty, but the recent institutional ratings show a mix of Overweight and Neutral actions, with no downgrades, suggesting that analysts are generally maintaining or increasing their confidence. The presence of a high target and recent upgrades points to a positive bias, but the volatility in the stock price highlights the risk involved.
AKAM Technical Analysis
Akamai's stock has exhibited a volatile uptrend over the past year, with a 1-year price change of +37.1%, significantly outperforming the S&P 500's +18.6% gain. The current price of $107.47 sits at approximately 65% of its 52-week range (between $70.82 low and $165.45 high), indicating a pullback from the highs but still well above the lows. This positioning suggests the stock is in a corrective phase after a strong rally, with the 52-week high reached in May 2026 following an AI-driven surge, but has since retraced, reflecting profit-taking and market volatility.
Beta
0.65
0.65x market volatility
Max Drawdown
-34.8%
Largest decline past year
52-Week Range
$71-$165
Price range past year
Annual Return
+36.5%
Cumulative gain past year
| Period | AKAM Return | S&P 500 |
|---|---|---|
| 1m | -10.8% | +1.0% |
| 3m | -33.9% | +1.1% |
| 6m | +5.2% | +13.8% |
| 1y | +36.5% | +19.5% |
| ytd | +23.5% | +12.2% |
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AKAM Fundamental Analysis
Akamai's revenue growth has been steady but modest, with the most recent quarter (Q1 2026) reporting revenue of $1.0736 billion, a 5.76% year-over-year increase. This growth rate is consistent with the prior quarters, which saw revenue of $1.0949 billion (Q4 2025), $1.0546 billion (Q3 2025), and $1.0435 billion (Q2 2025), indicating a stable but decelerating trajectory. The company's revenue is primarily driven by its security and compute segments, which have surpassed the traditional CDN business in importance, but the overall growth remains in the mid-single digits, which may not justify a high-growth valuation.
Quarterly Revenue
$1.1B
2026-03
Revenue YoY Growth
+5.8%
YoY Comparison
Gross Margin
56.1%
Latest Quarter
Free Cash Flow
$764734000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is AKAM Overvalued?
Given Akamai's positive net income, the primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE is 28.05x, while the forward PE is 15.00x, implying that the market expects significant earnings growth in the next year. This gap suggests that analysts anticipate a substantial increase in earnings, likely driven by the AI infrastructure opportunity. However, the PEG ratio is negative at -4.07, indicating that the expected earnings growth rate is negative, which is inconsistent with the forward PE, possibly due to one-time items or cyclical factors.
PE
28.1x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 19x~39x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.9x
Enterprise Value Multiple