Stock of the Day

July 20, 2020

Akamai Technologies (AKAM)

$76.73
-$21.30 (-21.7%)
Market Cap: $14.73B

About Akamai Technologies

Akamai Technologies, Inc. provides cloud computing, security, and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics; and cloud computing services, such as compute, storage, networking, database, and container management services to build, deploy, and secure applications and workloads. In addition, the company offers content delivery solutions; and an array of service and support to assist customers with integrating, configuring, optimizing, and managing its offerings. It sells its solutions through various channel partners. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

Akamai Technologies Bull Case

Here are some ways that investors could benefit from investing in Akamai Technologies, Inc.:

  • Akamai Technologies, Inc. has recently been upgraded by multiple analysts, with HSBC Global Research raising its rating to "strong-buy," indicating strong confidence in the company's future performance.
  • The stock is currently trading at $100.92, which is near its 12-month high of $128.62, suggesting potential for growth as it approaches previous highs.
  • Institutional investors own 94.28% of Akamai Technologies, Inc.'s stock, reflecting strong institutional confidence and stability in the company's performance.
  • The company has shown resilience with a low debt-to-equity ratio of 0.50, indicating a strong balance sheet and lower financial risk compared to its peers.
  • Akamai Technologies, Inc. has a solid market capitalization of approximately $15.16 billion, which positions it well for future growth and investment opportunities.

Akamai Technologies Bear Case

Investors should be bearish about investing in Akamai Technologies, Inc. for these reasons:

  • The company's price-to-earnings (P/E) ratio is 29.86, which may indicate that the stock is overvalued compared to its earnings, potentially leading to a price correction.
  • Recent insider selling, including a director selling 1,000 shares, may raise concerns about the company's future prospects and could signal a lack of confidence from those within the company.
  • Despite recent upgrades, some analysts have set price targets below the current trading price, suggesting that there may be limited upside potential in the near term.
  • The stock has experienced volatility, with a beta of 0.65, indicating that it may not be as stable as other investments, which could be a concern for risk-averse investors.
  • Recent sales by institutional investors, such as Tobam reducing its position by 30.1%, could indicate a shift in sentiment towards the stock, which may affect its performance.

Recent News