From Nasdaq: 2024-05-15 20:28:12

Akamai (NASDAQ:AKAM) stock has declined by 20% since January, with Q1 2024 earnings showing strong revenue growth of 8% year-over-year. However, Q2 guidance was weaker due to a stronger U.S. dollar and slowdown in traffic. The security business saw a 21% growth, leading to raised annual guidance in that sector.

Akamai’s focus on security is evident through strategic acquisitions and integration of security offerings into the Akamai Guardicore platform. The company recently acquired Noname Security for $450 million, tapping into the growing API security market. API security is projected to grow by 34% annually to nearly $1 billion by 2027, indicating a promising sector for Akamai. ID:d3c27547

Although AKAM stock performance has been lackluster compared to the S&P 500, the company’s valuation remains reasonable, with a forward earnings multiple of 15x. With potential upside in the security and computing markets, AKAM stock has a $120 price estimate, offering a 20% upside from its current price.

Investing in Akamai stock is a promising opportunity, given the company’s growth in security and computing sectors, along with a reasonable valuation. The potential for strong upside, especially in the API security market, makes AKAM a stock to watch in the coming months.



Read more at Nasdaq: Akamai Is Doubling Down On API Security. Is The Stock Attractive At $95?