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Buy Or Sell Akamai Stock?
Forbesยท 2025-11-12 16:45
Core Insights - Akamai Technologies (AKAM) stock has increased by 25.9% over the last 5 trading days and is currently valued at $13 billion with a revenue of $4.1 billion, trading at $90.61 [2] - The company has shown a revenue growth of 4.2% over the past 12 months and maintains an operating margin of 15.4% [2] - Akamai's liquidity is characterized by a Debt to Equity ratio of 0.4 and a Cash to Assets ratio of 0.1 [2] - The current valuation metrics include a P/E multiple of 25.7 and a P/EBIT multiple of 18.9 [2] Historical Performance - AKAM stock experienced a decline of 42.0% from its peak of $121.92 on April 20, 2022, to $70.75 on March 13, 2023, while the S&P 500 saw a peak-to-trough decline of 25.4% [6] - The stock fully recovered to its pre-Crisis peak by January 23, 2024, and reached a new peak of $128.32 on February 11, 2024 [6] - In previous downturns, AKAM stock has shown varying degrees of decline and recovery, including a drop of 21.9% from its peak of $102.56 on February 19, 2020, and a full recovery by April 16, 2020 [7] Market Context - The stock has historically performed worse than the S&P 500 during economic downturns, which raises concerns about its downturn resilience [3] - The analysis suggests that a diversified investment strategy may yield better returns and protection against market drops compared to investing in a single stock like AKAM [4][8] - AKAM offers cloud services that secure, deliver, and optimize content and applications, providing protection against cyber threats and online attacks [5]