AKAM's stock price has shown recent volatility, closing at $84.15 on March 10, 2025, with a significant volume of 3,873,618 shares traded. The stock is currently trading near its Fibonacci support levels, which might provide some stability. However, the RSI_14 of 41.99 suggests the stock is in a bearish trend, and the MACD is negative at -3.61, indicating potential downward momentum.

Valuation Analysis:

AKAM is currently trading at a Forward P/E ratio of 13.79, which is lower than the industry average of 21.96, suggesting the stock might be undervalued. However, the PEG ratio of 2.26 indicates that growth expectations are already factored into the price.

Analyst Sentiment:

Analysts have mixed opinions on AKAM. While some have lowered their price targets due to uncertainties and declining margins, others remain optimistic about the company's long-term prospects, particularly in its Security and Compute segments. The average price target is $100, representing a 22.11% upside from the current price.

Recent News and Events:

The company's Q4 results were mixed, with better-than-expected revenue but weaker guidance for 2025. Insider activity, including the sale of 6,431 shares by the COO, has also raised concerns about internal confidence.

Conclusion:

Given the mixed analyst sentiment, near-term challenges, and insider activity, it is recommended to hold AKAM stock at this time. While the stock may be undervalued, the uncertainties and potential downside risks outweigh the immediate upside potential.

What is price prediction 2025 for AKAM Stock?

AKAM stock is predicted to trade between $77 and $90 in 2025, with potential upside to $93 if resistance is broken. The stock faces technical resistance at higher levels and mixed institutional sentiment, while insider sales may impact confidence.

What is surpport and resistant level for AKAM Stock?

The S1 support level for AKAM Stock is $79.28 ,The R1 resistant level for AKAM Stock is $86.47.

What is the current price of AKAM Stock?

As of the end of day on 2025-03-17, the price of AKAM Stock was $80.67.

What is the target price of AKAM Stock?

The target price for AKAM Stock according to analyst rating is 103.41, with the highest price target at 133.00 and the lowest at 72.00. Analysts have a Moderate Buy rating on AKAM Stock overall.

What is the market cap of Akamai Technologies Inc?

The market cap of AKAM is $12.1B.

Is Akamai Technologies Inc (AKAM) overvalued?

Analysis and Insights

Valuation Metrics:

Akamai Technologies (AKAM) currently exhibits a forward P/E ratio of approximately 27-29, which is higher than the industry average, suggesting a premium valuation. The EV/EBITDA ratio ranges between 11.5-13.7, indicating moderate valuation levels. The price-to-sales (PS) ratio is 3.58-4.36, which is elevated, pointing to a rich valuation relative to its revenue. The price-to-book (PB) ratio of 2.88-3.58 further supports the notion of a premium valuation. The dividend yield is 0%, indicating no income component for investors.

Financial Performance:

Akamai's total revenue has shown steady growth, reaching $1.01 billion in Q4 2024, up from $986.97 million in Q1. However, net income has been volatile, with a notable decline in Q3 2024 to $57.90 million from $131.69 million in Q2. Gross profit has remained stable, while net margin decreased from 17.77% in Q1 to 10.66% in Q4, reflecting potential margin compression. Return on equity (ROE) has also declined, from 14.22% in Q1 to 10.66% in Q4, signaling reduced profitability.

Market Sentiment and Insider Activity:

Recent stock performance shows a 5.69% increase, but AKAM remains 22.80% below its 52-week high of $113.36. Insider activity indicates a lack of confidence, with 9 sales and only 2 purchases in the past six months. Institutional investors have also reduced their positions, with 398 institutions decreasing their holdings in the latest quarter compared to 287 increases, reflecting mixed sentiment.

Conclusion:

Considering the elevated valuation metrics, declining net margins, and negative insider sentiment, Akamai Technologies appears overvalued. While the company has shown revenue growth, the premium valuation and profitability concerns suggest caution.

What is Akamai Technologies Inc (AKAM)'s business?

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.

What is price prediction 2030 for AKAM Stock?

AKAM stock is predicted to reach $130 by 2030, driven by consistent revenue growth and strong demand in cloud services. The stock's moderate valuation and positive industry outlook support this target.