Risk/Reward Rating: Neutral
Akamai bills itself as the pioneering leader of the intelligent edge that makes digital experiences fast, intelligent, and secure for the world’s leading brands. In an age of exploding connectivity, connected devices, and edge computing, Akamai is well positioned as the intelligent edge company. Akamai provides its technology services via one of the largest distributed networks, blanketing the world with over 4,200 physical network locations.
The company has two primary business segments, the Edge Technology Group (62% of revenue, includes the CDN or content delivery business) and the Security Technology Group (38% of revenue). In the recently reported second quarter, the Edge Technology Group reported revenue down 1% versus 2020 while the Security Technology Group grew revenue 25%. Overall, sales grew 7% which is in line with the expected revenue growth for the 2021 full year. Akamai has been a steady grower over the years and should continue to grow faster than the overall economy over the business cycle.
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