The technology sector stocks have largely led a bull run and outperformed the S&P 500 index in 2024. The steady decline in the inflation rate since early 2024, the relatively low unemployment rate and consumers’ resilience in some end markets were positive factors driving the growth. Investors have increasingly favored companies with a strong focus on AI advancements.Despite an overall positive picture, some companies were not able to capitalize on this favorable trend. Global macroeconomic uncertainty, ris ...

Core Insights - Akamai Technologies, Inc. has been recognized as a market leader in API Security by multiple independent outlets, highlighting its commitment to combating API vulnerabilities and breaches [1][3] - The company has received several prestigious awards, including the Top InfoSec Innovator Awards for 2024 and the API Security Platform of the Year award from CyberSecurity Breakthrough [2][3] - Akamai recorded 108 billion API attacks from January 2023 to June 2024, emphasizing the critical need for robust API security solutions in modern enterprises [4] Awards and Recognition - Akamai was awarded the Top InfoSec Innovator Awards for 2024 by Cyber Defense Magazine, which recognized its understanding of future threats and cost-effective solutions [2] - The company was also named the Publisher's Choice API Security winner at the Global InfoSec Awards 2024 [2] - Akamai is recognized as a Leader and Fast Mover in the GigaOm Radar for API Security, showcasing its strategic vision in the industry [3] Industry Context - APIs are essential for global business operations, but they are increasingly targeted by cyber attackers [4] - The State of the Internet report indicates that API attacks can lead to data breaches, brand reputation damage, regulatory fines, and significant financial losses [4] - The growing number of API attacks underscores the necessity for businesses to implement effective API security measures to thrive in today's environment [4]

Acquisition Overview - Akamai Technologies, Inc. has completed the acquisition of select assets from the bankrupt media firm Edgio Inc, which includes customer contracts and non-exclusive license rights to patents, but excludes Edgio personnel and network-related assets [1][2] Financial Impact - The acquisition is expected to generate incremental revenues of $9-$11 million in Q4 2024, despite transition service costs of $15-$17 million, leading to a dilutive effect on non-GAAP earnings by 3-5 cents in the same quarter [4] - For 2025, Akamai anticipates revenues from the transaction to be between $80-$100 million, with transition service costs of $25-$30 million, resulting in an accretive non-GAAP net income of 15-20 cents per share [5] Customer and Service Expansion - The deal is expected to provide Akamai with hundreds of new customers, enhancing its revenue-generating capabilities and allowing these customers immediate access to Akamai's full portfolio of cybersecurity and cloud computing services [3][5] Market Trends and Strategic Initiatives - Akamai's security offerings are set to benefit from increased demand for data computing at the edge, driven by the rapid deployment of 5G and IoT devices [6] - The company is leveraging AI capabilities in its API security solutions to analyze APIs, detect vulnerabilities, and minimize risks, which is expected to drive commercial expansion and long-term benefits [6]

CAMBRIDGE, Mass., Dec. 13, 2024 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers business online, today announced it has completed its acquisition of select assets from Edgio, including certain customer contracts from Edgio's businesses in content delivery and security, and non-exclusive license rights to patents in Edgio's portfolio. On Nov. 26, 2024, the U.S. Bankruptcy Court for the District of Delaware approved Akamai's bid to acquire th ...

Group 1: Cloud Companies Performance - Cloudflare Inc (NYSE:NET) received an upgrade from Morgan Stanley to "overweight" from "equal weight," with a price target increase to $130 from $92, highlighting its potential for sustained revenue growth [1] - Akamai Technologies, Inc. (NASDAQ:AKAM) and Fastly Inc (NYSE:FSLY) were also upgraded to "outperform" from "perform" by Oppenheimer, indicating positive analyst sentiment towards these companies [1] - Cloudflare's stock rose 6.2% to $106.04, marking its highest level since February, with a 27.8% lead projected for 2024 [1] Group 2: Akamai Technologies (AKAM) - AKAM's stock increased by 4.7% to $98.46, on track for a third consecutive gain, recovering from a 52-week low of $84.70 [2] - The stock is currently testing its 50-day moving average after a significant 14.8% drop post-earnings on November 8, and has decreased by 17.2% year-to-date [2] Group 3: Fastly Inc (FSLY) - FSLY's stock rose 18.4% to $10.08, aiming for its fourth gain in the last five sessions, after a period of consolidation around $8 [3] - The stock is now at its highest level since a 30% drop following earnings in May, although it has lost over 44% in the past 12 months [3]

Core Viewpoint - Akamai Technologies has received court approval to acquire select assets from Edgio, which includes customer contracts and non-exclusive patent license rights, as part of Edgio's Chapter 11 bankruptcy proceedings [1][2]. Acquisition Details - The acquisition was finalized after Akamai submitted the winning bid during Edgio's bankruptcy auction on November 13, 2024 [2]. - The transaction will not include Edgio personnel, technology, or network-related assets [1]. Customer Transition - Upon closing, several hundred new Akamai customers will transition to Akamai's services, ensuring a smooth migration before Edgio ceases its operations [3]. - Akamai aims to provide these customers immediate access to its full range of cybersecurity and cloud computing services [3]. Financial Impact - For Q4 2024, Akamai expects the transaction to contribute approximately $9-$11 million in revenue, with transition service costs estimated at $15-$17 million [4]. - The transaction is anticipated to be dilutive to non-GAAP net income per diluted share by approximately $0.03-$0.05 in Q4 2024 [4]. Future Projections - For the full year 2025, Akamai projects the transaction will add approximately $80-$100 million in revenue and incur transition service costs of about $25-$30 million [5]. - It is expected to be accretive to non-GAAP net income per diluted share by approximately $0.15-$0.20 [5]. Strategic Value - Akamai's management believes the acquisition will create significant value by integrating new customers onto its platform, improving profitability, and unlocking growth opportunities [6]. - The transaction is expected to close in early December 2024, pending customary closing conditions [6].

Akamai Technologies, Inc. (AKAM) recently announced the expansion of its industry-leading Akamai Guardicore Segmentation and Enterprise Application Access solutions to further improve the performance, security and scalability of cloud environments. This is likely to support agentless enforcement for cloud-native resources in Amazon Web Services (“AWS”), the cloud computing services of Amazon.com, Inc. (AMZN) .Key Features of AKAM’s Upgraded Guardicore SegmentationThe latest version of Akamai Guardicore Segm ...

Core Insights - Akamai Technologies is enhancing its cybersecurity offerings by extending its Guardicore Segmentation solution to support agentless enforcement for cloud-native resources in AWS, which improves its capabilities in cloud environments [1][4] - New features have been added to Akamai's Zero Trust Network Access product, Enterprise Application Access, aimed at improving application performance and user experience [1][7] Group 1: Akamai Guardicore Segmentation - The Guardicore Segmentation solution provides seamless microsegmentation for multicloud and on-premises environments, now with agentless support for PaaS resources across Azure and AWS [4] - Benefits include agentless cloud-native visibility, a hybrid enforcement engine for network policy, integrated reputation analysis, and a scalable architecture that ensures data remains within cloud environments [5][6] - The solution addresses challenges such as lack of visibility into application behavior and governance issues between DevOps and SecOps teams [3] Group 2: Akamai Enterprise Application Access - Enterprise Application Access leverages Akamai's global infrastructure to provide secure access for remote and in-office employees, enhancing performance through edge delivery and distributed cloud compute capabilities [7][9] - New features include edge transport for performance optimization and local point of presence (PoP) to improve application speed, making file downloads two to three times faster [10] - The solution is designed to eliminate performance issues for in-office users by ensuring consistent and fast application access without additional hardware costs [9][10] Group 3: Industry Context - The Verizon 2024 Data Breach Investigations Report indicates that 32% of cybersecurity breaches involved ransomware, highlighting the urgent need for organizations to adopt a comprehensive Zero Trust framework [2] - Gartner's Hype Cycle for Zero-Trust Networking 2024 emphasizes that cloud-based ZTNA offerings enhance scalability and ease of adoption for secure remote access [9]

CAMBRIDGE, Mass., Nov. 15, 2024 /PRNewswire/ -- Akamai (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today announced it is the winning bidder to acquire select assets from Edgio, including customer contracts from Edgio's businesses in security and content delivery, and non-exclusive license rights to Edgio's entire patent portfolio. No assets related to the Edgio network would be acquired as part of the bid. Pursuant to Edgio's filing for Chapter 11 ...

Core Insights - Akamai Technologies, Inc. reported its Q3 earnings, prompting a detailed analysis of the numbers and the company's outlook [1] Financial Performance - The company’s Q3 earnings report includes specific financial metrics that warrant further examination to understand its performance [1] Investment Perspective - Despite the analysis of the earnings, there remains a lack of investment interest in the company, indicating potential concerns or a cautious outlook on future growth [1]