Akamai Technologies, Inc. AKAM
Verdict: Sell. Fair value $74.29 against a price of $85.10 on 5 Jan 2026, 13% below the price.
In plain words
The case for: Narrow competitive moat provides durability. Market leadership enables pricing power. Industry tailwinds with growing market.
The case against: Intense competitive pressure could compress margins. Revenue grew 24.7% from 2020 ($3.20B) to 2024 ($3.99B), while Net Income declined 10.7% ($0.56B to.... Financials are 97 days old. Additionally, 'Recent Quarters' table lists 'Actual' EPS for future....
Main risks
- Deteriorating Profitability: Net margins compressed from 18.8% (2021) to 12.5% (2024) despite revenue growth.
- Anemic Growth: 4.7% revenue growth significantly lags the broader Software Infrastructure sector.
- Missing Financial Data: Complete lack of Balance Sheet data (Assets, Equity, Debt) prevents assessment of solvency and capital efficiency.
- Revenue grew 24.7% from 2020 ($3.20B) to 2024 ($3.99B), while Net Income declined 10.7% ($0.56B to...
- Financials are 97 days old. Additionally, 'Recent Quarters' table lists 'Actual' EPS for future...
- Intense competitive environment