Akamai Technologies, Inc. (AKAM) - Stock Analysis
Last updated: Jan 18, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Strong Q3 beat with 5% revenue growth, 39% Cloud Infrastructure segment growth, AI product expansions, strategic partnerships, solid profitability and liquidity, accompanied by a 20% price gain over 21 days and breakout above resistance, indicating robust short-term momentum.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong gross margin ⢠Rising long-term debt ⢠Elevated capex Akamai posts strong margins and FCF supporting improved short-term liquidity but rising debt, elevated capex and weaker quarterly profitability materially increase risk to the investment case.
Price Behavior
Key Price Behavior Insights: ⢠Steady ascent ⢠Intermittent pullbacks ⢠Midâ80s support Support Level: $85.00â$86.00 Resistance Level: $88.00â$92.00 Over the last month AKAM strengthened from about $85.32 to $93.49, showing a steady bullish trend with intermittent pullbacks that signal manageable short-term resistance around the high-$80s to low-$90s.
Sentiment & News
Key News Insights: ⢠Institutional buying ⢠Analyst upgrade ⢠ISV Catalyst launch Institutional accumulation, a notable Morgan Stanley upgrade and the ISV Catalyst launch point to improving cloud-focused momentum for Akamai despite short-term share volatility and mixed broker guidance.
AI Summary
Akamai's strategic pivot from a cashâgenerative CDN/security business to capitalâintensive edgeâAI and inference services could materially re-rate the stock if CIS ARR and Inference Cloud utilization scale quickly, but investors should explicitly watch nearâterm capex cadence, cash conversion and leverage metricsâif utilization lags or capex stays elevated without margin recovery, downside risk is amplified.
Description
Akamai Technologies provides cloud-based services that secure, deliver and optimize internet content and business applications globally. Its portfolio includes protections for infrastructure, websites, APIs and users, performance tools for web and mobile applications, media and software delivery capabilities, edge computing for distributed code execution, and carrier-oriented network services, supported by integration and management services. The company sells through direct and channel sales, was founded in 1998 and is headquartered in Cambridge, Massachusetts.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Nov 26 | Dec 3 | AKAM | Akamai Technologies, Inc. | Strong Q3 beat with 5% revenue growth, 39% Cloud Infrastructure segment growth, AI product expansions, strategic partnerships, solid profitability and liquidity, accompanied by a 20% price gain over 21 days and breakout above resistance, indicating robust short-term momentum. | Closed | -1.7% |