AKAM

Stock Performance: Akamai Technologies' shares rose 6.92% to $78.06 in after-hours trading following a strong Q3 financial report, despite being down 23.50% year-to-date.

Q3 Financial Results: The company reported a revenue of $1.055 billion for Q3, a 5% increase from the previous year, with a non-GAAP net income per diluted share of $1.86, up 17% year-over-year.

Growth Segments: Revenue growth was driven by the security segment, which grew 10% to $568 million, and cloud infrastructure services, which surged 39% to $81 million.

Future Guidance: Akamai anticipates Q4 revenue between $1.065 billion and $1.085 billion, with non-GAAP operating margins projected to be between 28% and 30%.

US Stock Market Performance: The S&P 500 and Dow Jones closed slightly up, while the Nasdaq 100 fell, as stocks rebounded from early losses amid ongoing government shutdown negotiations. Economic concerns, including a drop in consumer sentiment and job cuts, weighed on market sentiment.

Federal Reserve Comments: Fed Vice Chair Philip Jefferson's hawkish remarks on interest rates contributed to market pressure, indicating a cautious approach to rate cuts as the economy faces restrictive conditions.

Corporate Earnings: Q3 earnings season showed strong results, with 81% of S&P 500 companies beating forecasts, although profit growth is expected to be the smallest in two years. Notable gainers included Globus Medical and Expedia Group, while semiconductor stocks faced declines.

Global Economic Indicators: Weaker-than-expected trade data from China and mixed inflation expectations in the US added to concerns about global growth, while European bond yields rose amid better-than-expected German trade news.

U.S. Stock Market Performance: U.S. stocks declined, with the Nasdaq Composite dropping over 1% on Friday.

Dropbox Earnings Report: Dropbox Inc. shares surged 8.3% to $31.05 after reporting quarterly earnings of 74 cents per share, exceeding analyst expectations of 65 cents.

Other Notable Stock Gains: Several companies, including Globus Medical Inc. (up 35.6%) and JFrog Ltd. (up 23.5%), reported better-than-expected financial results, leading to significant stock price increases.

General Market Trends: Other companies like Expedia Group Inc. and Akamai Technologies Inc. also saw substantial gains following positive earnings reports and raised guidance for FY25.