Akamai Technologies (AKAM): Evaluating Valuation After Deepening Apiiro Partnership in Enterprise Application Security

Akamai Technologies (AKAM) just expanded its partnership with Apiiro, bringing their security platforms together for a more unified approach to application and API protection across the full software development lifecycle.

See our latest analysis for Akamai Technologies.

Despite rolling out new services and deepening partnerships, Akamai Technologies has faced a tough 2025, with shares sliding more than 18% year-to-date and its 1-year total shareholder return sitting around -24%. Nevertheless, the company’s continued push into API security and performance management hints at long-term growth potential as digital infrastructure demands intensify.

If all these shifts in application security have your attention, now is a great time to explore other leading tech and AI innovators. See the full list for free.

All this raises a compelling question for investors: with Akamai trading at a notable discount to analyst targets, is Wall Street overlooking its long-term upside or is the stock simply reflecting the challenges ahead?

Most Popular Narrative: 18.5% Undervalued

With Akamai Technologies closing at $77.56, the most widely followed narrative sets a fair value much higher, suggesting the market is missing something. This perspective now frames the debate on what could drive Akamai above current levels.

The proliferation of AI applications requiring secure, ultra-low-latency infrastructure benefits Akamai's globally distributed platform, as seen in new AI Gateway and Firewall for AI offerings. This positions the company to capture new AI-driven workloads, supporting both future top-line growth and potentially higher net margins through value-added solutions.

Read the complete narrative.

Curious about what really powers this bullish narrative? Key growth, margin, and multiple assumptions set the stage for possible upside. What bold projections underpin the valuation spike? Find out which trends and numbers drive this compelling story. One overlooked corner of Akamai’s business could be the game changer.

Result: Fair Value of $95.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent headwinds in Akamai’s core delivery segment and rising capital expenditures could easily undermine the optimistic growth narrative that investors are watching.

Find out about the key risks to this Akamai Technologies narrative.

Build Your Own Akamai Technologies Narrative

If you want to dig deeper and reach your own conclusions, our platform puts all the data and tools at your fingertips. Build a personalized narrative in just a few minutes. Do it your way

A great starting point for your Akamai Technologies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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