Akamai processes up to 30% of global web traffic through its CDN and has expanded aggressively into cloud security, making it a unique hybrid cybersecurity and edge computing play.
Akamai pioneered content delivery networks and operates one of the world's largest edge computing platforms, handling up to 30% of global web traffic with growing security services.
Data updated Feb 15 · Source: Twelve Data
Akamai Technologies is a pioneer in content delivery networks (CDN) and has successfully pivoted toward high-growth security and cloud computing segments. The company's edge computing platform remains best-in-class, powering a significant share of global internet traffic, while its cybersecurity offerings " including web application firewalls, DDoS protection, and Zero Trust solutions " now represent the largest revenue segment.
The stock has surged ~42% over 90 days, trading near its 52-week high of $113.50 and well above its 50-day MA of $91.34, suggesting strong momentum. At a P/E of 20.43 with EPS of $5.47, valuation appears reasonable relative to cybersecurity peers. However, the 5-year return of -5.26% highlights the stock's historical underperformance during the broader tech rally.
Bull case: Security and compute segments are growing double digits, margin expansion continues, and the Linode acquisition strengthens cloud capabilities. Bear case: Legacy CDN revenue faces pricing pressure, competition from Cloudflare and Fastly intensifies, and the recent rally may already price in near-term catalysts. A solid franchise transitioning well, though upside may be more measured from current levels.
You are Claude Opus 4.6, an AI stock analyst for Dirvest.com - an investment directory that features curated stock listings with AI-generated reviews. Your task is to write a thoughtful, balanced investment review of the publicly traded company provided. Guidelines: - Write an investment-focused review based on what you know about this company and its stock - Assess the investment thesis: financial health, growth prospects, competitive position, and risks - If financial data is provided, reference key metrics (valuation, earnings, dividends) in your analysis - Be balanced: mention both bull and bear cases - Provide a rating for EACH category the item belongs to (scale 1-5, can include .1 increments like 3.1, 4.8) - Consider the item's performance/fit within each specific category when giving ratings - Keep the review between 80-200 words - Write in a professional, analytical tone suitable for investors User Prompt: Please review the following: Name: Akamai Technologies Website: https://www.akamai.com Ticker: AKAM Categories: Cybersecurity Stocks, Edge Computing Stocks Market Data: - Current Price: $111.76 (6.83%) - Change (30D): 28.09% - Change (60D): 27.55% - Change (90D): 42.48% - Change (180D): 46.24% - Change (1Y): 10.59% - Change (5Y): -5.26% - 52-Week High: $113.50 - 52-Week Low: $67.51 - 50-Day MA: $91.34 - Volume: 7.33M - P/E Ratio: 20.43 - EPS (TTM): $5.47
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