Akamai Technologies Inc logo

Akamai Technologies Inc(AKAM)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$86.56
11/12/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for AKAM

11/12/2026: AKAM (1-star) is currently NOT-A-BUY. Pass it for now.

Akamai Technologies is a leading internet infrastructure company known for its massive distributed edge network. The firm is successfully pivoting from a traditional content delivery model toward higher-margin cybersecurity and distributed cloud computing services. Its primary growth opportunity lies in the scaling of its 'Connected Cloud' platform to compete in the edge-compute market. However, investors face risks from aggressive competition by major hyperscalers and potential slowing in legacy delivery business. The stock may suit growth-oriented investors looking for established tech platforms that balance consistent cash flow with long-term technological evolution, though it does not provide dividends.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitAkamai offers steady, predictable growth but lacks the hyper-growth profile of some cloud-native software peers.
Momentum investorWeak fitThe stock often exhibits lower volatility and lacks the explosive trend-following characteristics momentum investors typically seek.
Value investorStrong fitThe company often trades at more reasonable valuation multiples compared to high-growth, unprofitable SaaS companies.
Dividend investorWeak fitAkamai does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorStrong fit while signal remains positiveIts established market position and consistent cash flows provide a level of stability rare in the tech sector.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock is subject to market-wide tech sector swings but is generally less volatile than high-growth cloud stocks.
Valuation riskMediumExtended valuation premiums may correct if growth in the new cloud compute business fails to materialize.
Competition risk (Cloud Infrastructure)HighDirect competition from hyperscalers like AWS and Google Cloud remains a primary threat to Akamai's compute ambitions.
Business qualityStrongAkamai has a deep economic moat due to the massive scale of its global edge network.
Dividend incomeLow / noneInvestors should not expect income generation from this equity.
Execution riskMediumSuccessfully transitioning from a CDN provider to a full-stack cloud computing provider is a complex technical and sales challenge.

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 12.50B USD
Price to earnings Ratio 33.73
1Y Target Price 130.39
Price to earnings Ratio 33.73
1Y Target Price 130.39
Volume (30-day avg) 6.3M shares
Beta 0.66
52 Weeks Range 77.37 - 165.45
Updated Date 11/12/2026
52 Weeks Range 77.37 - 165.45
Updated Date 11/12/2026
Dividends yield (FY) -
Basic EPS (TTM) 2.57

Sector & Industry Intelligence

Sector

Technology

Caution
Sentiment
Near Bearish
Momentum
Rapid Breadth Deterioration
BUY participation
30.1%
Active BUY / eligible
37 / 123
30-Day BUY Count Change
-42
Market state
Weak Bullish / Near Bearish

BUY participation is falling rapidly, suggesting elevated market vulnerability.

Industry

Software - Infrastructure

BUY participation
50.0%
Active BUY / eligible
14 / 28
30-Day BUY Count Change
-8

Sector signal summarizes BUY breadth conditions for the sector. It does not override this stock’s BUY, SELL, or PASS advisory.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -52.68%
Avg. Invested days 34
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/12/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
AKAM receives a 4-star rating, supported by solid unit economics, solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
AKAM has solid overall fundamentals (4 stars), with solid financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, strong cash generation (FCF margin 16.6%) and solid profitability (net margin 10.7%) are partially offset by negative earnings growth (-10.5%), moderate revenue growth (+5.4%), modest insider ownership of 2.12%.

Financial Health Rating

★★★★★
AKAM's financial health is supported by solid cash strength, including free-cash-flow generation (16.6% of revenue). Operating efficiency is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Revenue growth is AKAM's strongest growth driver at +5.4% FY2025 versus FY2024 (moderate, 3 stars). By comparison, while earnings growth (-10.5%, negative) and free-cash-flow growth (-16.1%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 118.9% and approximately 97.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 2.12% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

Capital World Investors 7.80%
BlackRock Inc 7.28%
Vanguard Capital Management, LLC 6.61%
Vanguard Portfolio Management, LLC 5.05%
State Street Corp 4.02%

Unit Economics (Per $1K Revenue)

★★★★★
AKAM generates approximately $547 of gross profit, $149 of operating income, and $166 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Solid margins and strong cash conversion support the rating, although capital efficiency remains weak.

Economic Dimensions

★★★★★
Effective Tax Rate: 24.96%

Quantitative Style Profile

★★★★★
AKAM has a large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Low VolatilityLarge / Mega Cap StabilityShort Squeeze RiskHighly Liquid / Institution-Friendly

How Company Makes Money

Business areaWhat it includesRetail investor read
SecurityDDoS protection, web security, and zero-trust products.This is the fastest-growing and highest-margin part of their business.
DeliveryContent delivery network (CDN) services for video and web traffic.This is their established, stable business, though growth has slowed.
ComputeCloud computing, storage, and edge-native application services.This is a newer, high-potential growth area aimed at competing with traditional cloud providers.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2026-11-05
When After Market
Estimate 0.92
Actual 0.94

Profitability

Profit Margin 8.84%
Operating Margin (TTM) 10.49%

Management Effectiveness

Return on Assets (TTM) 2.18%
Return on Equity (TTM) 7.85%

Valuation

Trailing PE 33.73
Forward PE 12.27
Enterprise Value 18.43B
Price to Sales(TTM) 2.85
Enterprise Value 18.43B
Price to Sales(TTM) 2.85
Enterprise Value to Revenue 4.1
Enterprise Value to EBITDA 14.53
Shares Outstanding 144.23M
Shares Floating 140.96M
Shares Outstanding 144.23M
Shares Floating 140.96M
Percent Insiders 2.12
Percent Institutions 118.91

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.