Akamai’s Expanded Apiiro Partnership Might Change The Case For Investing In Akamai Technologies (AKAM)

• Akamai Technologies recently announced an expanded partnership with Apiiro, integrating their application security and posture management platforms to deliver full lifecycle application security for enterprises.
• This collaboration aims to help organizations address challenges such as unified API protection, tool fragmentation, and AI-driven development complexity by combining both companies’ strengths into a single, business-aware security platform.
• We’ll examine how Akamai’s focus on unified application and API security with Apiiro could influence its growth outlook and risk profile.

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Akamai Technologies Investment Narrative Recap

Akamai shareholders focus on the company's transformation from a mature content delivery business toward high-growth cloud, security, and edge computing opportunities, underpinned by persistent demand for secure digital infrastructure. The recently expanded partnership with Apiiro brings incremental strength to its security story, but does not materially shift the key near-term catalyst: ramping cloud and compute contract revenues; nor does it resolve the major risks around margin pressure from heavy capital investment and competition.

Of Akamai’s recent initiatives, the launch of its Managed Service for API Performance stands out, as it extends API visibility and compliance, areas further reinforced by the Apiiro collaboration. While these security-centric moves align with growing enterprise challenges, their impact ties back to whether Akamai can accelerate adoption in a market crowded with hyperscale rivals and value-added solutions.

By contrast, investors must also consider how sustained margin pressures from rising capital expenditures could influence Akamai’s long-term earnings path if client ramp-up proves slower than expected...

Read the full narrative on Akamai Technologies (it's free!)

Akamai Technologies' outlook anticipates $4.9 billion in revenue and $765.1 million in earnings by 2028. This implies a 6.1% annual revenue growth rate and an increase in earnings of $340.5 million from the current $424.6 million.

Uncover how Akamai Technologies' forecasts yield a $95.20 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Fair value opinions from five Simply Wall St Community members span from US$66 to US$131.64 per share, reflecting markedly different outlooks on Akamai’s prospects. As you weigh these diverse views, keep in mind fierce competition from hyperscalers could continue to challenge Akamai’s ability to capture premium growth and defend margins.

Explore 5 other fair value estimates on Akamai Technologies - why the stock might be worth as much as 69% more than the current price!

Build Your Own Akamai Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Akamai Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Akamai Technologies' overall financial health at a glance.

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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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