Akamai Technologies, Inc.

After a steady correction over the past few months, Akamai’s stock has been appreciating steadily with its results being a few days away. The company’s last results had been an all-around beat in spite of the ongoing challenges with slower internet traffic growth and the global economic environment. The revenue of the company has been growing, driven by continued rapid growth in the compute and security business. Akamai has been leveraging its financial strength to make substantial investments in cloud computing and financial strength. Growth in the security of the company has been primarily driven by its API and app security portfolio, including Page Integrity Manager solutions, Account Protector, Bot manager, and web app firewall. The company’s security portfolio of zero trust enterprise has been performing well with several significant customer wins. Among major developments, Akamai Technologies recently launched Malware Protection that shields APIs and web applications from malicious uploads. Telstra, the largest telecom provider in Australia, expanded its business with Akamai by adding the company’s Secure web gateway solution into its portfolio of products. Akamai also signed a contract with the largest media companies in the world for running an innovative critical workload on Linode. We provide the stock of Akamai with a ‘Hold’ rating with a revision in the target price.