Company Overview - Akamai Technologies (AKAM) closed at $79.71, reflecting a -1.29% change from the previous day, underperforming the S&P 500's 0.02% gain [1] - The stock has increased by 1.44% over the past month, which is lower than the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93% [1] Earnings Expectations - The upcoming earnings report is scheduled for August 7, 2025, with an expected EPS of $1.55, a decrease of 1.9% from the same quarter last year [2] - Quarterly revenue is anticipated to be $1.02 billion, representing a 4.26% increase from the previous year [2] Annual Performance Estimates - For the annual period, the Zacks Consensus Estimates project earnings of $6.27 per share and revenue of $4.12 billion, indicating changes of -3.24% and +3.31% respectively from the last year [3] - Recent adjustments to analyst estimates are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism [3] Valuation Metrics - Akamai Technologies is currently trading at a Forward P/E ratio of 12.88, which is a discount compared to its industry's Forward P/E of 20.42 [6] - The company has a PEG ratio of 1.61, aligning with the Internet - Services industry's average PEG ratio of 1.61 [6] Industry Context - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 192, placing it in the bottom 23% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - The article discusses the challenges and solutions faced by Chinese e-commerce companies in the context of global competition and the rise of live streaming sales, emphasizing the need for robust cloud infrastructure to support these demands [1][6]. Group 1: E-commerce Globalization and Technical Challenges - The e-commerce industry is experiencing a surge in user interaction during live streaming, making low latency and high elasticity critical for revenue generation. A delay increase from 1 second to 3 seconds can lead to a 32% rise in bounce rates, while a 100-millisecond reduction in resource loading time can enhance conversion rates by 8.4% [2][4]. - Major sales events like "Double Eleven" and "6·18" create unpredictable spikes in user traffic, leading to resource over-provisioning and potential cost wastage. Therefore, reducing network latency and enhancing elastic scaling capabilities are urgent priorities [2][4]. Group 2: AI Integration and Security Risks - The integration of AI in e-commerce is improving efficiency but also introduces new security challenges, such as potential data leaks and denial-of-service attacks. Protecting AI models is essential due to their vulnerability [4][6]. - The trend towards high-definition and interactive live streaming is driving the rapid rise of Video Processing Units (VPU), which offer significant advantages in video transcoding efficiency, environmental sustainability, and accessibility for smaller e-commerce players [4][6]. Group 3: Akamai's Solutions and Product Offerings - Akamai is addressing the complex challenges in the e-commerce sector by leveraging its global network infrastructure to provide targeted solutions, including a public cloud built on the principles of simplicity, network-first approach, and open-source [6][8]. - Akamai has expanded its global core nodes from 11 to 42 within three years, enhancing its ability to tackle low latency issues through a robust Content Delivery Network (CDN) [8]. - The company has launched three key product lines: a cloud-native Kubernetes (K8S) product line to simplify deployment, a virtual machine product line including the environmentally friendly VPU, and the TrafficPeak log analysis platform to manage high traffic during peak sales events [9][10]. Group 4: Future of E-commerce - The future of e-commerce will hinge on user experience, which is determined by a combination of latency, security, and cost factors. The ability to simplify complex technologies into user-friendly services will be crucial for e-commerce companies [10].

Company Performance - Akamai Technologies (AKAM) closed at $77.93, with a daily increase of +1.16%, outperforming the S&P 500's gain of 0.54% [1] - Over the last month, Akamai's shares decreased by 2.11%, while the Computer and Technology sector gained 5.77% and the S&P 500 gained 4.2% [1] Upcoming Earnings Report - Akamai is scheduled to release its earnings on August 7, 2025, with an anticipated EPS of $1.55, reflecting a 1.9% decline from the same quarter last year [2] - The consensus estimate for revenue is $1.02 billion, indicating a 4.26% increase compared to the same quarter of the previous year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.27 per share and revenue of $4.12 billion, showing changes of -3.24% and +3.31% respectively from the previous year [3] Analyst Estimates and Stock Performance - Recent modifications to analyst estimates for Akamai are important as they reflect short-term business trends [4] - Positive estimate revisions indicate analyst optimism about the business and profitability [4] Zacks Rank and Stock Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Akamai at 4 (Sell) [6] - The Zacks Consensus EPS estimate has decreased by 0.05% over the past month [6] - Akamai is trading at a Forward P/E ratio of 12.28, which is a discount compared to its industry's Forward P/E of 19.88 [7] PEG Ratio - Akamai has a PEG ratio of 1.54, which is in line with the average PEG ratio for the Internet - Services industry [8] Industry Overview - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [9] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks [9]

Core Insights - Akamai Technologies has been recognized as a Customer Favorite in "The Forrester Wave™: Zero Trust Platforms, Q3 2025" for its strong performance in various evaluation criteria [1][2] - The company received the highest scores in Segmentation and Control, Pricing flexibility and transparency, and Supporting services and offerings [1][2] Company Performance - Forrester's report highlights Akamai's ability to provide a simplified segmentation process for network traffic control across multiple environments, making it a recommended choice for organizations [2] - Reference customers have praised Akamai for its responsiveness to customer feedback and its role as a trusted partner in their Zero Trust journey [2] Pricing and Services - Akamai's pricing structure is noted for its simplicity, offering a single contract that covers various deployment types [2] - The company provides comprehensive supporting services, including consultative services, implementation, and threat hunting, ensuring customer support beyond deployment [2] Strategic Focus - Akamai emphasizes a customer-first approach as a key differentiator, which has contributed to its recognition in the Forrester report [2] - The company's Zero Trust architecture is designed to manage risk effectively in fragmented environments by granting access based on identity and context rather than network location [2]

Core Insights - Corero Network Security has announced the deployment of its SmartWall ONE™ solution's orchestration plane in Akamai Compute, enhancing customer flexibility and agility in DDoS protection management [1][2] - The new capability allows customers to operate the full control plane in the cloud, eliminating the need for on-premises infrastructure and significantly reducing deployment time from weeks to hours [2][3] - This development strengthens Corero's strategic partnership with Akamai, facilitating a more streamlined go-to-market approach and supporting enterprise cloud strategies [4] Deployment Benefits - The orchestration in Akamai Compute provides immediate cloud-native advantages, including elastic resource allocation, built-in high availability, and geographic redundancy [3] - Customers can utilize cloud infrastructure temporarily during software upgrades or internal transitions, ensuring operational continuity without added complexity [3] - The architecture supports multi-tenant management with strong control plane separation, offering secure and scalable deployment options [4] Company Overview - Corero Network Security specializes in DDoS protection solutions, focusing on automatic detection and protection with network visibility, analytics, and reporting tools [5] - The company is headquartered in London and operates centers in Marlborough, Massachusetts, USA, and Edinburgh, UK, listed on the London Stock Exchange's AIM market and the US OTCQX Market [5]

Company Announcement - Akamai Technologies, Inc. will hold a conference call for investors on August 7, 2025, at 4:30 p.m. ET to discuss its second quarter 2025 financial results and may provide forward-looking financial guidance [1] - The conference call will be broadcast live on Akamai's Investor Relations page, and a replay will be available for two weeks following the call [2] Company Overview - Akamai is a cybersecurity and cloud computing company that powers and protects businesses online, offering market-leading security solutions and full-stack cloud computing solutions [3] - The company emphasizes its superior threat intelligence and global operations team, which provide defense-in-depth to safeguard enterprise data and applications [3] - Akamai is trusted by global enterprises for its reliability, scale, and expertise, enabling them to grow their business with confidence [3]

Core Viewpoint - Akamai Technologies has announced the addition of Janaki Akella and Bas Burger to its Board of Directors, enhancing its leadership in cloud computing and cybersecurity through their extensive experience in technology and global business transformation [1][4]. Group 1: New Board Members - Janaki Akella brings expertise in cloud computing, cybersecurity, and AI, with previous leadership roles at Google and McKinsey & Company, and currently serves on several boards including Southern Company and Sallie Mae Corporation [2]. - Bas Burger, CEO of BT International, has a strong background in executing go-to-market initiatives and driving customer acquisition and retention, contributing to global data and cloud connectivity solutions [3]. Group 2: Strategic Importance - The addition of Akella and Burger is seen as critical for Akamai's growth in cloud computing and cybersecurity, with their insights expected to support the company's transformation and innovation efforts [4]. - Akamai's CEO, Tom Leighton, emphasized the value of Akella's experience in digital transformation and Burger's international business acumen in driving future growth opportunities [4]. Group 3: Company Overview - Akamai is recognized as a leading cybersecurity and cloud computing company, providing market-leading security solutions and full-stack cloud computing services to safeguard enterprise data and applications [5].

Core Insights - Akamai Technologies has announced new enhancements to its API Security offerings, aimed at helping customers address evolving threats to APIs, which are increasingly targeted by cyberattacks [1][2] - The company's API Security solutions have received recognition through industry awards and positive customer feedback, indicating strong market validation [1][3] API Security Enhancements - The latest enhancements focus on improving visibility across the API development and production lifecycle, addressing critical security gaps [2] - Key features include: - Managed Service for API Security, which offers real-time monitoring and expert response to early threats [6] - Integration with code repositories for pre-launch risk assessment of APIs [6] - Compliance Dashboard for centralized monitoring against security and privacy standards like PCI DSS v4.0 and GDPR [6] Customer Feedback - Customers have reported significant benefits from Akamai's API Security solutions, highlighting improved visibility and risk management: - A CTO from an insurance company noted enhanced data usage visibility and minimized attack surface [2] - A CISO from a software company emphasized the tool's effectiveness in guiding their AppSec team and simplifying risk assessment [2] - An executive in healthcare praised the robustness and responsiveness of the tool, providing peace of mind regarding API-level visibility [2] Industry Recognition - Akamai's security solutions have recently won three prestigious industry awards, reflecting the company's growing traction in the market [3] - The Senior Vice President of Akamai's Application Security Portfolio stated that the recognition indicates the company is effectively addressing real customer problems [4]

Core Insights - Akamai Technologies is a significant player in the content delivery network (CDN) and cloud infrastructure services market, valued at $11.5 billion [1] - The company aims to enhance content delivery over the Internet, addressing issues like traffic congestion and bandwidth constraints, particularly in high-definition video streaming [2] Financial Performance - Akamai reported a 3% year-over-year revenue increase, reaching $1.02 billion, driven by strong demand in Security and Compute verticals [6] - GAAP net income decreased to $123.2 million or $0.82 per share, down from $175.4 million or $1.11 per share in the previous year, primarily due to high operating expenses [4] - Non-GAAP net income slightly increased to $256.1 million or $1.70 per share, surpassing the Zacks Consensus Estimate by $0.12 [5] Revenue Breakdown - Security Technology Group revenues grew by 8% year-over-year to $530.7 million, supported by demand for Guardicore Segmentation Solution and API security solutions [7] - The Delivery segment's revenues fell to $319 million from $351.8 million in the previous year, while the Compute segment saw an increase to $165.5 million from $144.5 million [8] Management Outlook - For Q2 2025, Akamai anticipates revenues between $1.012 billion and $1.032 billion, with a projected non-GAAP operating margin of 28% [10] - For the full year 2025, the revenue forecast is between $4.050 billion and $4.2 billion, with non-GAAP earnings projected at $6.10 to $6.40 per share [12] Market Position and Future Potential - Despite current growth challenges, Akamai may have opportunities in the emerging AI economy if it can develop new growth drivers [13]

Industry Overview - The content delivery network (CDN) market is expected to grow at a CAGR of 18.04% from 2025 to 2034, indicating strong industry growth potential [2]. Cloudflare Analysis - Cloudflare's CDN offers a high-performance platform that enhances content delivery speed and secures web connectivity, reducing latency and improving load times [4]. - The company employs advanced techniques such as tiered caching and Argo smart routing to optimize delivery efficiency and minimize traffic [5]. - Cloudflare supports advanced protocols like HTTP/3 and provides developer flexibility through Cloudflare Workers, which has been adopted by over three million developers [6]. - Projected revenues for Cloudflare in 2025 are between $2.09 billion and $2.094 billion, reflecting a year-over-year growth of 25.4% [7]. - Non-GAAP earnings per share for Cloudflare are anticipated to be between 79 cents and 80 cents, indicating a year-over-year growth of 5.3% [8]. Akamai Technologies Analysis - Akamai Technologies has experienced a decline in delivery revenues for 17 consecutive quarters, raising concerns about its CDN business sustainability [11][15]. - The company integrates security features like DDoS and WAF protection with edge computing solutions, handling approximately two trillion web interactions daily [12][13]. - Akamai's non-GAAP earnings are expected to be in the range of $6.10 to $6.40 per share, with a Zacks Consensus Estimate of $6.27 per share, indicating a year-over-year decline of 3.2% [15]. Stock Performance and Valuation - Year-to-date, Cloudflare shares have increased by 66.9%, while Akamai shares have decreased by 18.3%, reflecting diverging investor sentiment [11][17]. - Cloudflare is trading at a forward sales multiple of 26.65X, while Akamai is at 2.71X, suggesting that Cloudflare's strong market position justifies its higher valuation despite appearing overvalued [18]. Conclusion - Cloudflare is gaining market share and showing robust growth, while Akamai is struggling with declining revenues, leading to a more favorable investment outlook for Cloudflare [19].