Why The Akamai Technologies Stock Fell Over 1.2% (AKAM)

By Amit Chowdhry ● Jan 24, 2023
  • The stock price of Akamai Technologies (AKAM) fell by over 1.2% intraday today. This is why.

The stock price of Akamai Technologies (AKAM) fell by over 1.2% intraday today.

Why: Research report

Price target: $75

Rating: Sell

Analyst firm: Guggenheim

Guggenheim analysts adjusted the rating while noting that they see Akamai as a well-run company with the right strategic vision and a management team that has proven to be strong operator, but there are several risks that they believe are not accounted for.

The analysts believe that Wall Street is underestimating investments needed to expand Linode’s footprint. And even though they see long term upside to Compute revenue, the near-term capital intensity is likely going to be higher than estimates.

Plus, the analysts also see material risk in Security estimates as organic New Business growth has been decelerating for over year and the macro environment does not seem to be getting any less challenging.