Important note

This AI stock analysis for Akamai Technologies is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Akamai Technologies - AI Stock Analysis

Analysis generated February 20, 2025

Akamai Technologies, Inc. (NASDAQ: AKAM) is a global leader in content delivery network (CDN) services. Founded in 1998, the company offers a suite of products designed to make the internet fast, reliable, and secure. Akamai’s solutions are integral in providing high-quality web and media content delivery, cloud security, and enterprise performance solutions, serving a wide array of global customers.

Fundamental Analysis

The revenue for Akamai Technologies in the last quarter was $1 billion. This represents an increase of 2.56% compared to the previous quarter, and a year-over-year growth of 4.60%. These figures indicate a positive growth trajectory in terms of revenue. However, the company's net income for the last quarter was $58 million, which shows a significant drop of 56.03% from the previous quarter and a 63.93% decline from the same quarter last year. Such substantial declines in net income are causes for concern and suggest underlying issues in cost management or market conditions.

EBITDA for Akamai was $105 million in the last quarter, reflecting a decrease of 46.23% from the previous quarter and 48.74% year-over-year. These declines underscore potential operational challenges that Akamai might be facing. The current P/E ratio stands at 29.38, which could be seen as high and may indicate that the stock is overvalued. Finally, insider selling in the past few months may be a bearish signal indicating a lack of confidence in short-term performance.

Technical Analysis

Today’s stock price for Akamai Technologies is $98.28. This is a 7.99% increase compared to a month ago, indicating a short-term positive trend. However, on a year-over-year basis, the stock price has decreased by 8.29%, showing some long-term pessimism. The current SMA10 is $100; this is lower than the previous SMA10 of $100.38, suggesting a potential downward trend. The RSI currently stands at 67.9, indicating a neutral condition where the stock is neither overbought nor oversold.

Alternative Data Analysis

In terms of job postings and employee sentiment, Akamai Technologies has 153 open positions, up by 13% in the last couple of months, suggesting an expansion. Employee sentiment is neutral, reflecting mixed feelings among the workforce. Customer acquisition metrics show an estimated 1.6 million visitors to their webpage, a 15% decrease over the past couple of months, which is concerning as it might indicate declining customer interest. On the other hand, Akamai has 120,000 followers on Twitter with no significant changes in the past months, indicating stable but stagnant engagement. Lastly, according to AltIndex’s AI score, which integrates various data points, Akamai has a score of 53, signaling a hold recommendation.

Conclusion

Akamai Technologies presents a mixed bag of signals. On the one hand, its recent revenue growth is a positive indicator, but significant declines in net income and EBITDA raise red flags about its financial health. The high P/E ratio suggests potential overvaluation. The technical indicators also hint at possible bearish trends in the short run, despite a recent month-over-month price increase. Job postings and neutral employee sentiment show a company in growth mode, albeit with engagement issues as indicated by declining webpage visitors. The AI score of 53 suggests holding the stock, which aligns with the mixed fundamental and technical signals.

Therefore, it may be prudent for investors to take a cautious approach. While Akamai Technologies shows promise in terms of revenue growth and expansion, the concerning financial metrics and potential overvaluation suggest that careful monitoring and further analysis are warranted before making any significant investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.