Akamai Technologies, Inc.

Despite ongoing difficulties with the global economic environment, Akamai produced strong results in the fourth quarter, exceeding market expectations in terms of both, revenues as well as earnings. In constant currency, Q4 revenue increased by 6% to $928 million. Their rapidly expanding Compute business, the sustained high demand for their security solutions, and higher-than-anticipated shipping traffic contributed to their revenue growth. The company also noticed significant adoption of its application security solutions, including at one of the biggest international energy firms in the U.K., one of the top three multinational banks in Singapore, and two of the biggest tech hardware companies in the U.S. Among major updates, they launched their widely dispersed platform for cloud computing, security, and content delivery, Akamai Connected Cloud. We give Akamai Technologies a ‘Hold’ rating with a revised target price.