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Why did Akamai stock drop?
Akamai Stock Tumbles As Quarterly Earnings Miss, 2022 Guidance Lowered. Akamai Technologies (AKAM) reported first-quarter earnings that missed Wall Street targets amid its acquisition spree. The earnings report sent AKAM stock plunging as the company lowered 2022 guidance.
Is Akamai stock a buy?
Akamai Technologies has received a consensus rating of Hold. The company's average rating score is 2.42, and is based on 6 buy ratings, 5 hold ratings, and 1 sell rating.
Will Akamai stock go up?
Stock Price Forecast The 13 analysts offering 12-month price forecasts for Akamai Technologies Inc have a median target of 118.00, with a high estimate of 164.00 and a low estimate of 90.00. The median estimate represents a +28.14% increase from the last price of 92.09.
What company owns Akamai?
Akamai Technologies Inc (NASDAQ:AKAM) Institutional investors hold a majority ownership of AKAM through the 97.96% of the outstanding shares that they control. This interest is also higher than at almost any other company in the Internet Software/Services industry.
Is apam a buy?
The financial health and growth prospects of APAM, demonstrate its potential to outperform the market. It currently has a Growth Score of A. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A.
Is Akam a good investment?
(NASDAQ:AKAM) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for AKAM is 49.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score.
Does Netflix use Akamai?
Netflix initially outsourced streaming video delivery to three large CDN vendors (Akamai, Level3, and LimeLight).
Does Apple use Akamai?
As indicated by Linc Davis, akamaitechnologies.com is used by Apple (and others) as a content delivery network (CDN). iCloud content is stored on Akamai servers.
Does Microsoft use Akamai?
By becoming an Akamai customer, Microsoft joins the list of leading Web companies that rely on Akamai for high-performance, reliable delivery of content to their users.
The stock fell after the company reported a good quarter, likely because investors didn't like the reports from rival businesses
What happened
I've been a contributor with the Motley Fool since 2019 and it's been a supreme joy to try to help make the world a little smarter, happier, and richer every day. What's great about exploring business and the economy is the insight it gives you into how things are in the world.
So what
Shares of Akamai Technologies ( NASDAQ:AKAM) dropped 13.9% in October, according to data provided by S&P Global Market Intelligence. Most of the drop came after the company reported results for the third quarter of 2020.
Now what
A content delivery network (CDN) like Akamai helps make the internet faster by physically placing servers closer to internet users. CDNs aren't new, but there's a heightened awareness of their usefulness. The COVID-19 pandemic has caused more people to be online and that could drag speeds down, highlighting the need for efficient CDNs.
What happened
When researching a stock, it's important to consider industry trends. Concerning trends, I don't think the need for Akamai's services is going away any time soon -- this includes both CDN and cybersecurity services. Furthermore, the stock sold off on what appeared to be a good quarter. This could create a buying opportunity.
So what
Shares of Akamai Technology ( AKAM 1.34% ) have tanked today, down by 9% as of 2:50 p.m. EDT, after the company reported third-quarter earnings. The results beat expectations, but the broader market is selling off due to macroeconomic fears caused by rising COVID-19 cases.
Now what
Revenue in the third quarter increased 12% to $793 million, comfortably ahead of the $775.2 million in sales that analysts were modeling for. That resulted in adjusted net income of $216 million, or $1.31 per share. Wall Street was looking for just $1.23 per share in adjusted profits.
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Akamai finished Q3 with $2.6 billion in cash. The company also repurchased 100,000 shares for $13 million during the quarter.
