| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 23.80 | -75 |
| Graham Formula | 36.00 | -62 |
Akamai Technologies, Inc. (AK3.DE) is a global leader in cloud services, specializing in secure content delivery, cybersecurity, and edge computing solutions. Headquartered in Cambridge, Massachusetts, Akamai operates a vast distributed network that optimizes web and mobile performance, protects against cyber threats, and enhances digital experiences for enterprises worldwide. The company serves diverse industries, including media, gaming, e-commerce, and financial services, by offering solutions like web performance optimization, video streaming, and edge compute capabilities. With a strong focus on innovation, Akamai leverages its Intelligent Edge Platform to deliver low-latency, high-performance services. As cyber threats grow, Akamai’s security solutions, including DDoS protection and zero-trust architectures, position it as a critical player in the Software - Infrastructure sector. The company’s revenue streams are diversified across direct sales and channel partnerships, reinforcing its resilience in the evolving cloud and cybersecurity markets.
Akamai Technologies presents a compelling investment case due to its strong market position in cloud security and content delivery, backed by a robust financial profile. With a market cap of €14.4 billion, the company generates steady revenue (€3.99 billion in FY 2023) and net income (€504.9 million), supported by high operating cash flow (€1.52 billion). Its low beta (0.67) suggests relative stability compared to broader tech markets. However, investors should note its significant total debt (€4.63 billion) and lack of dividends, which may deter income-focused shareholders. Akamai’s growth prospects are tied to increasing demand for cybersecurity and edge computing, but competition from larger cloud providers poses a risk. The stock’s appeal lies in its defensive tech exposure and recurring revenue model.
Akamai Technologies holds a competitive edge through its globally distributed edge network, which ensures low-latency content delivery and robust security solutions. Unlike hyperscale cloud providers, Akamai specializes in edge optimization, making it a preferred partner for latency-sensitive applications like gaming and live streaming. Its security offerings, including web application firewalls and zero-trust solutions, differentiate it in the cybersecurity space. However, the company faces intense competition from cloud giants like AWS and Cloudflare, which offer overlapping services with broader infrastructure integration. Akamai’s asset-light model allows scalability, but its reliance on third-party data centers could limit control over performance consistency. The company’s focus on high-margin security services (e.g., Prolexic) strengthens profitability, yet its slower growth in traditional CDN markets compared to newer entrants is a concern. Strategic partnerships, such as those with Microsoft Azure, help mitigate competitive pressures by expanding its ecosystem reach.