Akamai Technologies (AKAM) posted Q4 earnings and revenue that beat the estimates but the value of its stock tumbled due its 2025 forecast falling well below market expectations. Market analysts questioned the future of company after it revealed disappointing guidance. Akamai reported steady growth in 2024 and made a strategic pivot towards security and compute growth as its legacy business shifted. The company experienced profit decrease in Q4 but still managed to outperform the expectations. However, its stock led the S&P 500 decliners.
Akamai was downgraded by Piper Sandler and Craig-Hallum due to the disappointing forecast. Interestingly, one of the world's largest tech companies selected Akamai as its strategic cloud computing provider with a commitment to spend over $100M. This positive development and a healthy revenue growth led to speculations of surprise performance in 2025. However, fierce AI competition caused Akamai to lower its revenue forecast. It also faced mixed signals from the market resulting in a notable price drop.
Akamai unveiled its Defenders' Guide 2025 to empower cybersecurity teams and announced a winning bid for select assets of Edgio. Insiders of Akamai sold worth $2.5M of stock possibly indicating caution over the future of the company.
Akamai Technologies AKAM News Analytics from Thu, 08 Aug 2024 07:00:00 GMT to Sun, 23 Feb 2025 00:58:48 GMT - Rating -5 - Innovation 4 - Information 7 - Rumor -3
