Akamai Technologies, Inc.’s Stock Price Plummets to $91.19, Experiencing a Significant 11% Drop

Akamai Technologies, Inc. (AKAM)

91.19 USD -11.27 (-11.00%) Volume: 9.72M

Explore the recent performance of Akamai Technologies, Inc.’s stock price, currently standing at 91.19 USD, experiencing a significant drop of -11.00% this trading session with a trading volume of 9.72M. The stock has witnessed a downturn YTD, showing a percentage change of -22.95%.

Latest developments on Akamai Technologies, Inc.

Akamai Technologies, Inc. (NASDAQ:AKAM) has seen significant stock price movements following its Q1 2024 earnings call. Despite surpassing analyst EPS estimates and reporting increased profits, the company’s weak guidance for the second quarter led to a tumble in its shares. The firm’s stock performance has been varied, underperforming the market on some days and outperforming competitors on others. The company’s decision to acquire Noname Security for $450M to enhance API security offerings has drawn attention, as has their win of a 2024 Stevie® Award. Akamai’s future performance is being closely watched following its lowered FY24 guidance amidst struggles in content delivery.

Akamai Technologies, Inc. on Smartkarma

Analysts at Baptista Research have provided bullish coverage on Akamai Technologies, highlighting the company’s strong potential in AI inferencing services to catalyze revenue growth. In their research reports, they noted that Akamai reported robust Q4 2023 results, with revenue reaching an impressive $995 million and a non-GAAP operating margin of 30%. The year-over-year non-GAAP earnings per share also showed a significant increase, demonstrating the company’s steady progress.

Furthermore, Baptista Research also praised Akamai Technologies for exceeding analyst expectations in terms of revenue and earnings. With a revenue surge to $965 million and a non-GAAP operating margin of 31%, Akamai showcased a substantial 9% year-over-year growth. The non-GAAP earnings per share reached $1.63, reflecting a remarkable 29% year-over-year increase. Additionally, Akamai’s security segment experienced a notable 20% year-over-year growth in Q3, according to the research reports.

A look at Akamai Technologies, Inc. Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Akamai Technologies seems to have a positive long-term outlook in terms of its overall value. With a high score in the value category, the company may be seen as undervalued compared to its competitors. However, its low score in the dividend category suggests that it may not be a strong choice for investors seeking regular income from dividends.

Additionally, Akamai Technologies scores moderately in growth and momentum, indicating potential for future expansion and market performance. However, its resilience score is lower, which may suggest some vulnerabilities in the company’s ability to withstand economic challenges. Overall, Akamai Technologies‘ Smart Scores paint a mixed picture of its future prospects, with strengths in value and growth but weaknesses in dividend yield and resilience.

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