Is Akamai Technologies Stock a Good Investment?
Akamai Technologies Investment Advice | AKAM |
- Examine Akamai Technologies' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Akamai Technologies' leadership team and their track record. Good management can help Akamai Technologies navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Internet Services & Infrastructure space and any emerging trends that could impact Akamai Technologies' business and its evolving consumer preferences.
- Compare Akamai Technologies' performance and market position to its competitors. Analyze how Akamai Technologies is positioned in terms of product offerings, innovation, and market share.
- Check if Akamai Technologies pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Akamai Technologies' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Akamai Technologies stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Akamai Technologies is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Akamai Technologies Stock
Researching Akamai Technologies' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The book value of Akamai Technologies was presently reported as 31.83. The company has Price/Earnings To Growth (PEG) ratio of 1.26. Akamai Technologies had not issued any dividends in recent years.
To determine if Akamai Technologies is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Akamai Technologies' research are outlined below:
| Akamai Technologies is unlikely to experience financial distress in the next 2 years | |
| Akamai Technologies has a strong financial position based on the latest SEC filings | |
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from abcnews.go.com: Will Trumps executive order save TikTok Experts weigh in. |
Akamai Technologies Quarterly Liabilities And Stockholders Equity |
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Akamai Technologies uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Akamai Technologies. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Akamai Technologies' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 13th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Akamai Technologies' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Akamai Technologies' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2004-10-27 | 2004-09-30 | 0.09 | 0.08 | -0.01 | 11 | ||
2004-07-27 | 2004-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2006-07-26 | 2006-06-30 | 0.18 | 0.2 | 0.02 | 11 | ||
2004-02-04 | 2003-12-31 | -0.01 | 0.01 | 0.02 | 200 | ||
2010-04-28 | 2010-03-31 | 0.31 | 0.35 | 0.04 | 12 | ||
2009-02-04 | 2008-12-31 | 0.4 | 0.44 | 0.04 | 10 | ||
2008-02-06 | 2007-12-31 | 0.37 | 0.41 | 0.04 | 10 | ||
2003-10-29 | 2003-09-30 | -0.07 | -0.03 | 0.04 | 57 |
Akamai Technologies Target Price Consensus
Akamai target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Akamai Technologies' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 25 | Strong Buy |
Most Akamai analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Akamai stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Akamai Technologies, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationAkamai Technologies Target Price Projection
Akamai Technologies' current and average target prices are 101.48 and 113.74, respectively. The current price of Akamai Technologies is the price at which Akamai Technologies is currently trading. On the other hand, Akamai Technologies' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Akamai Technologies Market Quote on 30th of January 2025
Target Price
Analyst Consensus On Akamai Technologies Target Price
Akamai Technologies Analyst Ratings
Akamai Technologies' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Akamai Technologies stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Akamai Technologies' financials, market performance, and future outlook by experienced professionals. Akamai Technologies' historical ratings below, therefore, can serve as a valuable tool for investors.Know Akamai Technologies' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Akamai Technologies is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Akamai Technologies backward and forwards among themselves. Akamai Technologies' institutional investor refers to the entity that pools money to purchase Akamai Technologies' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Barclays Plc | 2024-09-30 | 2.8 M | Bank Of New York Mellon Corp | 2024-09-30 | 2.8 M | Mackenzie Investments | 2024-09-30 | 2.3 M | Amvescap Plc. | 2024-09-30 | 2.3 M | Earnest Partners Llc | 2024-09-30 | 2.2 M | Nordea Investment Mgmt Bank Demark A/s | 2024-12-31 | 2.1 M | Edmond De Rothschild Holding S.a. | 2024-09-30 | 2 M | Groupama Asset Management | 2024-09-30 | 2 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 2 M | Vanguard Group Inc | 2024-09-30 | 18.2 M | Blackrock Inc | 2024-09-30 | 14.8 M |
Akamai Technologies' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 15.08 B.Market Cap |
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Akamai Technologies' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.08 | 0.08 | |
| Return On Capital Employed | 0.07 | 0.07 | |
| Return On Assets | 0.05 | 0.05 | |
| Return On Equity | 0.12 | 0.11 |
Determining Akamai Technologies' profitability involves analyzing its financial statements and using various financial metrics to determine if Akamai Technologies is a good buy. For example, gross profit margin measures Akamai Technologies' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Akamai Technologies' profitability and make more informed investment decisions.
Akamai Technologies' Earnings Breakdown by Geography
Evaluate Akamai Technologies' management efficiency
Akamai Technologies has return on total asset (ROA) of 0.0419 % which means that it generated a profit of $0.0419 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1154 %, meaning that it created $0.1154 on every $100 dollars invested by stockholders. Akamai Technologies' management efficiency ratios could be used to measure how well Akamai Technologies manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Akamai Technologies' Return On Tangible Assets are very stable compared to the past year. As of the 30th of January 2025, Return On Capital Employed is likely to grow to 0.07, while Return On Equity is likely to drop 0.11. At this time, Akamai Technologies' Return On Tangible Assets are very stable compared to the past year. As of the 30th of January 2025, Return On Assets is likely to grow to 0.05, while Non Currrent Assets Other are likely to drop about 102.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 27.13 | 28.49 | |
| Tangible Book Value Per Share | 7.14 | 5.38 | |
| Enterprise Value Over EBITDA | 16.02 | 16.83 | |
| Price Book Value Ratio | 4.52 | 4.29 | |
| Enterprise Value Multiple | 16.02 | 16.83 | |
| Price Fair Value | 4.52 | 4.29 | |
| Enterprise Value | 10.4 B | 10.9 B |
Evaluating the management effectiveness of Akamai Technologies allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Akamai Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 0.678 |
Basic technical analysis of Akamai Stock
As of the 30th of January, Akamai Technologies shows the risk adjusted performance of 0.0046, and Mean Deviation of 1.33. Akamai Technologies technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Akamai Technologies standard deviation, as well as the relationship between the maximum drawdown and kurtosis to decide if Akamai Technologies is priced correctly, providing market reflects its regular price of 101.48 per share. Given that Akamai Technologies has information ratio of (0.04), we suggest you to validate Akamai Technologies's prevailing market performance to make sure the company can sustain itself at a future point.Akamai Technologies' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Akamai Technologies insiders, such as employees or executives, is commonly permitted as long as it does not rely on Akamai Technologies' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Akamai Technologies insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Akamai Technologies' Outstanding Corporate Bonds
Akamai Technologies issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Akamai Technologies uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Akamai bonds can be classified according to their maturity, which is the date when Akamai Technologies has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View |
Understand Akamai Technologies' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Akamai Technologies' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0046 | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.33 | |||
| Coefficient Of Variation | (45,165) | |||
| Standard Deviation | 2.37 | |||
| Variance | 5.6 | |||
| Information Ratio | (0.04) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.23) | |||
| Treynor Ratio | (0.04) | |||
| Maximum Drawdown | 18.11 | |||
| Value At Risk | (1.95) | |||
| Potential Upside | 3.55 | |||
| Skewness | (3.44) | |||
| Kurtosis | 20.85 |
| Risk Adjusted Performance | 0.0046 | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.33 | |||
| Coefficient Of Variation | (45,165) | |||
| Standard Deviation | 2.37 | |||
| Variance | 5.6 | |||
| Information Ratio | (0.04) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.23) | |||
| Treynor Ratio | (0.04) | |||
| Maximum Drawdown | 18.11 | |||
| Value At Risk | (1.95) | |||
| Potential Upside | 3.55 | |||
| Skewness | (3.44) | |||
| Kurtosis | 20.85 |
Consider Akamai Technologies' intraday indicators
Akamai Technologies intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Akamai Technologies stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Akamai Technologies Corporate Filings
F4 | 15th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 6th of December 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Akamai Stock media impact
Far too much social signal, news, headlines, and media speculation about Akamai Technologies that are available to investors today. That information is available publicly through Akamai media outlets and privately through word of mouth or via Akamai internal channels. However, regardless of the origin, that massive amount of Akamai data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Akamai Technologies news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Akamai Technologies relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Akamai Technologies' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Akamai Technologies alpha.
Akamai Technologies Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Akamai Technologies can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Akamai Technologies Historical Investor Sentiment
Investor biases related to Akamai Technologies' public news can be used to forecast risks associated with an investment in Akamai. The trend in average sentiment can be used to explain how an investor holding Akamai can time the market purely based on public headlines and social activities around Akamai Technologies. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Akamai Technologies' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Akamai Technologies and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Akamai Technologies news discussions. The higher the estimate score, the more favorable the investor's outlook on Akamai Technologies.
Akamai Technologies Maximum Pain Price Across March 21st 2025 Option Contracts
Akamai Technologies' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Akamai Technologies close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Akamai Technologies' options.
Akamai Technologies Corporate Management
| Anthony Williams | Chief VP | Profile | |
| Charlie Rice | Senior Development | Profile | |
| Kim Jackson | Executive Officer | Profile | |
| Mani Sundaram | Executive Group | Profile |
Already Invested in Akamai Technologies?
The danger of trading Akamai Technologies is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Akamai Technologies is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Akamai Technologies. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Akamai Technologies is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Akamai Technologies is a strong investment it is important to analyze Akamai Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Akamai Technologies' future performance. For an informed investment choice regarding Akamai Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Akamai Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. To learn how to invest in Akamai Stock, please use our How to Invest in Akamai Technologies guide.You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Akamai Technologies. If investors know Akamai will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Akamai Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.64) | Earnings Share 3.38 | Revenue Per Share | Quarterly Revenue Growth 0.041 | Return On Assets |
The market value of Akamai Technologies is measured differently than its book value, which is the value of Akamai that is recorded on the company's balance sheet. Investors also form their own opinion of Akamai Technologies' value that differs from its market value or its book value, called intrinsic value, which is Akamai Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Akamai Technologies' market value can be influenced by many factors that don't directly affect Akamai Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Akamai Technologies' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Akamai Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akamai Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.