How New Cloud and AI Security Partnerships at Akamai Technologies (AKAM) Have Changed Its Investment Story

• On August 13, 2025, Aptum announced a new partnership with Akamai Technologies to deliver cloud migration and transformation services, while Akamai also revealed a collaboration with Aqua Security to bolster AI-powered cloud security for enterprise customers.
• These recent deals signal Akamai’s growing efforts to accelerate innovation in cloud and AI security, aligning its platform with evolving enterprise technology priorities.
• We’ll examine how Akamai’s expanded cloud services partnerships may influence its investment narrative and future growth outlook.

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Akamai Technologies Investment Narrative Recap

To be comfortable owning Akamai Technologies, investors must believe the company can offset secular declines in its legacy delivery business by scaling its cloud, compute, and security offerings quickly enough to drive sustained revenue and profit growth. The recent partnerships with Aptum and Aqua Security underscore Akamai’s intent to align its platform with rising AI and security demands, but they do not yet materially alter the short-term catalyst of accelerating cloud revenue or reduce the main risk of margin pressure from capital-intense expansion.

Among the latest developments, Akamai’s August 13 announcement with Aptum stands out, as it connects directly to the ongoing catalyst of expanding Cloud Infrastructure Services (CIS) revenue. By partnering to offer integrated cloud migration services, Akamai aims to deepen enterprise adoption of its cloud platform, which is essential for driving the top-line growth expected as part of its transformation story.

Yet, investors should not overlook that increasing capital expenditures to support these new cloud and AI initiatives could pressure net margins if scaling proves slower or costlier than anticipated...

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

Akamai Technologies' narrative projects $4.9 billion in revenue and $765.1 million in earnings by 2028. This requires 6.1% yearly revenue growth and a $340.5 million earnings increase from $424.6 million currently.

Uncover how Akamai Technologies' forecasts yield a $95.20 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community estimate Akamai’s fair value between US$50.32 and US$131.10 per share. While bullish cloud catalysts are top of mind, many investors continue to weigh margin and profitability risks before setting expectations for the company’s path forward.

Explore 6 other fair value estimates on Akamai Technologies - why the stock might be worth as much as 66% 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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