Akamai Technologies Upgraded to Overweight by Morgan Stanley
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2024
0mins
Should l Buy AKAM?
Akamai Technologies (AKAM) experienced a 4.38% increase in regular trading, reaching a 20-day high.
The stock surged after Morgan Stanley upgraded its rating from Underweight to Overweight, raising the price target from $83 to $115. This reflects optimism about Akamai's growth prospects, particularly as its content delivery segment stabilizes and its security segment maintains high-single-digit growth. Additionally, the compute segment has shown a remarkable 40% growth rate, driven by contributions from the public cloud unit Linode and the newly launched Akamai Inference Cloud service.
This upgrade signals strong confidence in Akamai's business transformation and growth trajectory, suggesting that the company is well-positioned to capitalize on increasing demand for cloud services.
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Analyst Views on AKAM
Wall Street analysts forecast AKAM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AKAM is 101.50 USD with a low forecast of 89.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
9 Buy
7 Hold
0 Sell
Moderate Buy
Current: 91.490
Low
89.00
Averages
101.50
High
115.00
Current: 91.490
Low
89.00
Averages
101.50
High
115.00
About AKAM
Akamai Technologies, Inc. is a cybersecurity and cloud computing company. The Company develops and provides solutions for global enterprises to build, secure and accelerate their applications and digital experiences. Akamai Connected Cloud, the Company's platform, is comprised of an edge and cloud architecture and underlying network for cloud computing, security and content delivery services. Its cloud computing services include compute, storage, networking, database and container management services that are required to build, deploy and secure applications and workloads. Its security solutions are designed to keep infrastructure, websites, applications, application programming interfaces and users safe from a multitude of cyberattacks and online threats while improving performance. Its content delivery solutions consist of Web and mobile performance focused solutions and media delivery solutions. It also provides services and support for its customers as they utilize its solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Akamai Recognized as Customers' Choice by Gartner for Network Security Microsegmentation
- High Customer Recommendation: Akamai achieved a 99% recommendation rate in the January 2026 Gartner Peer Insights report, being one of only two vendors recognized, showcasing its strong market validation in network security microsegmentation.
- Market Maturity Indicator: The release of Gartner's first Voice of the Customer report for network security microsegmentation signals market maturity, indicating that microsegmentation is now an essential control for enterprises rather than a luxury.
- Exceptional User Experience: Akamai's CTO Patrick Sullivan noted that this recognition reflects the company's relentless focus on customer experience, reinforcing its commitment to delivering high-quality services and solidifying its leadership in the cybersecurity sector.
- Positive Customer Feedback: Numerous customers praised Akamai's microsegmentation solutions for their user-friendly interface and exceptional support, indicating the effectiveness and reliability of Akamai in meeting security needs.
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- Strengthened Operational Management: By offering hybrid deployments, quarterly business reviews, and API audits, Deutsche Telekom Security achieves continuous end-to-end management, helping clients maintain compliance and security in a complex cybersecurity landscape.
- Market Demand Response: Akamai's 2025 State of the Internet report revealed a surge in API attacks to 150 billion between 2023 and 2024, and Deutsche Telekom Security's service expansion directly addresses this growing market need, ensuring clients can effectively counter cyber threats.
- Industry Leadership: With extensive experience and compliance expertise in the financial sector, Deutsche Telekom Security successfully implemented Akamai’s software-defined segmentation solution for a major state bank in Germany, ensuring the security and compliance of sensitive infrastructure.
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- Positive Catalyst Watch: Citi has placed Akamai on a Positive Catalyst Watch, highlighting a potential numbers shift and the boost from artificial intelligence, anticipating accelerated growth in 2026 due to AI advancements.
- Stock Performance: Akamai's shares have risen 4% year-to-date, reflecting a steadily constructive market sentiment and optimism regarding the company's prospects for topline rejuvenation after years of stagnation.
- AI Opportunity Assessment: Analysts believe that key AI opportunities across Akamai's three segments (Compute's Inference Cloud, AI-driven demand in Security and Delivery) are not fully priced in, indicating significant growth potential ahead.
- Valuation Margin of Safety: Despite the stock trading below historical levels, Akamai's
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- Impressive EPS Ratings: Ten tech stocks, including Akamai Technologies (AKAM) and Amphenol (APH), have received the highest EPS revision rating of A+, suggesting significant improvements in profitability expectations that could drive their stock prices higher.
- Increased Market Appeal: With analysts raising earnings forecasts for these companies, investors may reassess their portfolios, particularly in the tech sector, likely leading to increased capital inflows.
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- Earnings Call Announcement: Akamai Technologies will hold an investor conference call on February 19, 2026, at 4:30 p.m. ET to discuss Q4 and full-year 2025 financial results, which may include forward-looking guidance, aiding investors in assessing future performance.
- Dial-in Information: The call can be accessed in the U.S. at (833) 634-5020 and internationally at (412) 902-4238, with the password 'Akamai Technologies', ensuring global investor participation and enhancing transparency and communication efficiency.
- Replay Availability: Following the call, a replay will be available for two weeks by calling (855) 669-9658 (or (412) 317-0088 for international) using Conference ID 5393108, allowing investors who missed the live event to access key information.
- Webcast and Archive: The event will be broadcast live on Akamai's Investor Relations page, with an archived version accessible on the Akamai website, further improving information accessibility and investor engagement.
See More
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- Historical Lessons Review: David Gardner emphasizes that sharp market declines are common, and past experiences can help investors remain calm during future market fluctuations, thus avoiding poor decisions based on short-term volatility.
- Importance of Investment Mindset: He points out that successful investors are often those who continue to invest during market downturns rather than those who choose to exit during tough times, highlighting the critical nature of this mindset in long-term investing.
- Power of Language: Gardner mentions that the language investors use can influence their behavior, and using the right terminology can help investors better understand market dynamics and avoid making emotional decisions based on misleading language.
- Impact of Exceptional Stocks: He stresses that a few outstanding stocks can significantly enhance the overall returns of an investment portfolio, reminding investors to focus on the long-term potential of their holdings rather than short-term market fluctuations.
See More
Akamai Recognized as Customers' Choice by Gartner for Network Security Microsegmentation
- High Customer Recommendation: Akamai achieved a 99% recommendation rate in the January 2026 Gartner Peer Insights report, being one of only two vendors recognized, showcasing its strong market validation in network security microsegmentation.
- Market Maturity Indicator: The release of Gartner's first Voice of the Customer report for network security microsegmentation signals market maturity, indicating that microsegmentation is now an essential control for enterprises rather than a luxury.
- Exceptional User Experience: Akamai's CTO Patrick Sullivan noted that this recognition reflects the company's relentless focus on customer experience, reinforcing its commitment to delivering high-quality services and solidifying its leadership in the cybersecurity sector.
- Positive Customer Feedback: Numerous customers praised Akamai's microsegmentation solutions for their user-friendly interface and exceptional support, indicating the effectiveness and reliability of Akamai in meeting security needs.
See More
Deutsche Telekom Security Leverages Akamai to Enhance API Security Services
- Enhanced API Security Services: Deutsche Telekom Security utilizes Akamai’s Security Certified Service Provider initiative to deliver comprehensive API security lifecycle management for clients in critical sectors like finance and insurance, significantly improving their compliance capabilities.
- Strengthened Operational Management: By offering hybrid deployments, quarterly business reviews, and API audits, Deutsche Telekom Security achieves continuous end-to-end management, helping clients maintain compliance and security in a complex cybersecurity landscape.
- Market Demand Response: Akamai's 2025 State of the Internet report revealed a surge in API attacks to 150 billion between 2023 and 2024, and Deutsche Telekom Security's service expansion directly addresses this growing market need, ensuring clients can effectively counter cyber threats.
- Industry Leadership: With extensive experience and compliance expertise in the financial sector, Deutsche Telekom Security successfully implemented Akamai’s software-defined segmentation solution for a major state bank in Germany, ensuring the security and compliance of sensitive infrastructure.
See More
Akamai (AKAM) Gains Positive Catalyst Watch from Citi, AI Boosts Growth Outlook
- Positive Catalyst Watch: Citi has placed Akamai on a Positive Catalyst Watch, highlighting a potential numbers shift and the boost from artificial intelligence, anticipating accelerated growth in 2026 due to AI advancements.
- Stock Performance: Akamai's shares have risen 4% year-to-date, reflecting a steadily constructive market sentiment and optimism regarding the company's prospects for topline rejuvenation after years of stagnation.
- AI Opportunity Assessment: Analysts believe that key AI opportunities across Akamai's three segments (Compute's Inference Cloud, AI-driven demand in Security and Delivery) are not fully priced in, indicating significant growth potential ahead.
- Valuation Margin of Safety: Despite the stock trading below historical levels, Akamai's
See More
10 Mid-to-Low Cap Tech Stocks Earn A+ EPS Revision Ratings
- Analyst Confidence Boost: As earnings season begins, analysts are revising earnings expectations upward for mid-to-low cap tech stocks, indicating strong market confidence in these companies' profitability outlook, which may attract more investor interest.
- Impressive EPS Ratings: Ten tech stocks, including Akamai Technologies (AKAM) and Amphenol (APH), have received the highest EPS revision rating of A+, suggesting significant improvements in profitability expectations that could drive their stock prices higher.
- Increased Market Appeal: With analysts raising earnings forecasts for these companies, investors may reassess their portfolios, particularly in the tech sector, likely leading to increased capital inflows.
- Optimistic Industry Outlook: The positive revision ratings from analysts reflect the overall health of the tech industry, especially in emerging fields like AI and quantum computing, which are expected to drive performance in related stocks moving forward.
See More
Akamai Technologies to Announce Q4 and Full-Year 2025 Results on February 19, 2026
- Earnings Call Announcement: Akamai Technologies will hold an investor conference call on February 19, 2026, at 4:30 p.m. ET to discuss Q4 and full-year 2025 financial results, which may include forward-looking guidance, aiding investors in assessing future performance.
- Dial-in Information: The call can be accessed in the U.S. at (833) 634-5020 and internationally at (412) 902-4238, with the password 'Akamai Technologies', ensuring global investor participation and enhancing transparency and communication efficiency.
- Replay Availability: Following the call, a replay will be available for two weeks by calling (855) 669-9658 (or (412) 317-0088 for international) using Conference ID 5393108, allowing investors who missed the live event to access key information.
- Webcast and Archive: The event will be broadcast live on Akamai's Investor Relations page, with an archived version accessible on the Akamai website, further improving information accessibility and investor engagement.
See More
Motley Fool Co-Founder Reflects on Historical Lessons, Emphasizing Investment Mindset and Language Importance
- Historical Lessons Review: David Gardner emphasizes that sharp market declines are common, and past experiences can help investors remain calm during future market fluctuations, thus avoiding poor decisions based on short-term volatility.
- Importance of Investment Mindset: He points out that successful investors are often those who continue to invest during market downturns rather than those who choose to exit during tough times, highlighting the critical nature of this mindset in long-term investing.
- Power of Language: Gardner mentions that the language investors use can influence their behavior, and using the right terminology can help investors better understand market dynamics and avoid making emotional decisions based on misleading language.
- Impact of Exceptional Stocks: He stresses that a few outstanding stocks can significantly enhance the overall returns of an investment portfolio, reminding investors to focus on the long-term potential of their holdings rather than short-term market fluctuations.
See More
