Akamai Technologies (AKAM) stock drops 10% after weak Q2 guidance and lower price targets

From Nasdaq: 2024-05-23 06:30:00

Akamai Technologies (AKAM) is a Zacks Rank #5 (Strong Sell) offering cloud computing, security, and content delivery services. Q1 earnings slightly beat expectations at $1.64 EPS, but revenue fell below estimates at $987M. Weak Q2 guidance led to a 10% stock drop. Analysts lowered estimates and price targets, advising caution.

Akamai provides various services beyond security, including web performance and media delivery. Estimates for Q1, Q2, and full year earnings have fallen in the last 30 days. Price targets have been lowered by various analysts. The stock hit all-time highs in February but has since dropped.

Research Chief identifies a company targeting millennial and Gen Z audiences with nearly $1 billion in quarterly revenue. Recent pullback creates an ideal entry point. Investors should consider alternatives like Alphabet (GOOG), which is a top pick with a Zacks Rank #1 (Strong Buy). Impacted by back-to-back EPS disappointments, Akamai shows a 25% decrease since February.



Read more at Nasdaq: Bear of the Day: Akamai Technologies (AKAM)