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Akamai Technologies (AKAM) Stock Declines While Market Improves: Some Information for Investors
AkamaiAkamai(US:AKAM) ZACKSยท2025-07-28 23:15

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]