To understand the implications for Akamai's investment narrative, we'll explore how monetizing AI bot traffic through partner integrations could influence its future growth story.
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To be a shareholder in Akamai Technologies, you need to believe in the company's ability to offset ongoing CDN (content delivery network) headwinds by expanding into security and monetizing new forms of digital and AI-driven traffic. The latest partnerships with TollBit and Skyfire support Akamai's efforts to capture value from surging AI bot activity, but these announcements are not likely to materially change the most important near-term catalyst, growth in cloud infrastructure services, or the principal risk, which remains pressure on legacy delivery revenues and overall margins.
Among recent developments, the integration of Seraphic Security's secure enterprise browser capabilities with Akamai's Zero Trust product portfolio is especially relevant. This move directly addresses expanding cybersecurity requirements from enterprise clients, a focus consistent with ongoing catalysts like rising security-driven recurring revenue and potential margin improvement if security solutions ramp effectively within Akamai's service mix.
In contrast, investors should be aware that persistent competitive pressure on Akamai's CDN business could mean...
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Akamai Technologies' outlook anticipates $4.9 billion in revenue and $765.1 million in earnings by 2028. This projection is based on a 6.1% annual revenue growth rate and a $340.5 million increase in earnings from the current $424.6 million.
Uncover how Akamai Technologies' forecasts yield a $95.20 fair value, a 26% upside to its current price.
Five members of the Simply Wall St Community estimate Akamai's fair value between US$66 and US$131.64. While many see opportunity in security-driven growth, persistent competition in delivery services could weigh on overall profit trends, see how perspectives vary.