Stock Price & Analysis

Based on the current market data and technical analysis, AKAM stock shows a bullish momentum with a +2.47% gain today, closing at $102.1. The stock is currently trading above both its 20-day SMA ($96.89) and 60-day SMA ($95.26), indicating positive momentum.

The RSI-14 reading of 63.98 suggests strong momentum while staying below overbought levels. The positive MACD of 1.64 further confirms the bullish trend. Recent analyst ratings show mixed but generally positive sentiment, with Oppenheimer upgrading to Buy with a $120 price target, representing about 17.5% upside potential from current levels.

The stock has shown resilience despite recent market volatility, with institutional investors showing increased interest through options activity. The company's upcoming earnings report on February 20, 2025, will be a crucial catalyst, with analysts expecting $1.52 EPS.

Given the technical strength, positive analyst sentiment, and upcoming catalysts, AKAM appears to be a buy at current levels, with strong support at the Fibonacci S1 level of $97.58 and resistance at R1 of $102.92.

Based on technical analysis and recent market data, AKAM stock is projected to reach $107-110 by end of 2025, driven by strong momentum indicators (RSI at 63.98) and significant options activity at the $107 strike price for February 2025 calls. Recent acquisition of Noname Security and positive market sentiment suggest continued growth trajectory, with support at $102.92 (Fibonacci R1) and resistance at $107.24 (Fibonacci R3). The stock's upward movement is further supported by increasing institutional interest, evidenced by high options trading volume of 7,789 contracts, indicating bullish sentiment among large investors.

The S1 support level for AKAM Stock is $97.61 ,The R1 resistant level for AKAM Stock is $102.95.

As of the end of day on 2025-02-12, the price of AKAM Stock was $101.49.

The target price for AKAM Stock according to analyst rating is 112.92, with the highest price target at 125.00 and the lowest at 100.00. Analysts have a Moderate Buy rating on AKAM Stock overall.

The market cap of AKAM is $15.2B.

Based on the provided data and recent market performance, AKAM appears to be fairly valued with some concerns. The stock's P/E ratio of 29.81x in Q3 2024 is higher than its historical average, indicating potential overvaluation. Net income has shown a concerning downward trend, dropping from $175.4M in Q1 to $57.9M in Q3 2024, suggesting operational challenges.

Key Concerns:

• Declining profitability with net margin dropping significantly from 17.77% to 5.76% over three quarters
• Operating income fell 59.9% year-over-year to $70.6M in Q3
• Content delivery network revenues declined 15.9% year-over-year

Positive Factors:

• Security and Compute segment showing strong growth
• Total revenue grew 4.1% year-over-year to over $1 billion
• Trading at a discount to industry average Forward P/E (13.79x vs 21.96x)

Market Performance:

• Stock has underperformed, declining over 25.2% from its 20-year high
• Trading below both 50-day and 200-day moving averages since early November
• Lagging behind competitor Cloudflare (NET) which gained 43.2% over past six months

The stock appears overvalued considering its deteriorating fundamentals and operational challenges, despite trading at a discount to industry peers. The declining profitability and content delivery network revenue suggest potential headwinds ahead.

Akamai Technologies, Inc. is a cloud company that develops and provides solutions for global enterprises to build, deliver and secure their digital experiences on its distributed worldwide network. Akamai Connected Cloud, the Company's platform, is comprised of an edge and cloud architecture and underlying network for cloud computing, security and content delivery services. Its cloud computing services include compute, storage, networking, database and container management services that are required to build, deploy and secure applications and workloads. Its security solutions are designed to keep infrastructure, websites, applications, application programming interfaces and users safe from a multitude of cyberattacks and online threats while improving performance. The Company's content delivery solutions consist of Web and mobile performance focused solutions and media delivery solutions. The Company also provides services and support for its customers as they utilize its solutions.

Based on the available data and market analysis, here is the price prediction for AKAM stock by 2030:

AKAM stock is projected to reach $175-185 by 2030, driven by the company's strong position in edge computing and security solutions market. The company's strategic acquisitions like Noname Security and consistent revenue growth in Security and Compute segments support this bullish outlook. The increasing demand for cloud security and edge computing services indicates a compound annual growth rate of approximately 12-13% through 2030.

The stock's current technical setup and fundamentals, with a forward P/E of 13.79 trading below industry average, suggests significant upside potential over the long term.

AKAM has a total of 10250 employees.