Valued at a market cap of $12.4 billion, Akamai Technologies, Inc. (AKAM) is a prominent provider of cloud computing, cybersecurity, and content delivery network services. Headquartered in Cambridge, Massachusetts, the company operates a globally distributed edge platform that helps enterprises deliver faster, more secure, and more reliable digital experiences to users worldwide.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and AKAM fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software infrastructure industry. The company continues to play a critical role in the digital economy, offering scalable, security-focused solutions that support the growing demands of cloud adoption, online content delivery, and internet security.
Despite the notable market leadership, the tech titan has slipped 17.2% from its 52-week high of $103.75. Shares of AKAM have surged 11.8% over the past three months, outperforming the Nasdaq Composite’s ($NASX) 4.8% rise over the same time frame.
In the longer term, AKAM has declined 14.1% over the past 52 weeks, lagging behind $NASX’s 16.5% return over the same period. Moreover, on a YTD basis, shares of AKAM are down 10.2%, compared to $NASX’s 20.1% uptick.
AKAM shares have climbed above their 50-day and 200-day moving averages since early November, indicating an uptrend.
On Dec. 1, Akamai Technologies announced its acquisition of Fermyon, a serverless WebAssembly company. The deal bolsters Akamai’s edge computing strategy by combining Fermyon’s WebAssembly-based function-as-a-service capabilities with Akamai’s global platform, enabling faster and more cost-efficient edge-native applications as AI inference moves closer to users. Fermyon’s team, including its co-founders, will join Akamai’s Cloud Technology Group and continue supporting key open-source initiatives. Despite the strategic rationale, AKAM shares ended the session down 2% following the announcement.
Akamai Technologies has also significantly underperformed its rival, Cloudflare, Inc. (NET), which surged 76.2% over the past 52 weeks and 88% on a YTD basis.
The stock has a consensus rating of "Moderate Buy” from the 22 analysts covering it, which is an upgrade from “Hold” a month ago. Its mean price target of $93.95 suggests a 9.4% premium to its current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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