AKAM

Akamai Technologies Inc

TMT


Presented:04/05/2016
Price:$53.14
Cap:$9.55B
Current Price:$103.29
Cap:$15.65B

Presented

Date04/05/2016
Price$53.14
Market Cap$9.55B
Ent Value$9.33B
P/E Ratio29.85x
Book Value$17.61
Div Yield0%
Shares O/S179.73M
Ave Daily Vol3,079,676
Short Int6.24%

Current

Price$103.29
Market Cap$15.65B
Akamai Technologies, Inc. provides cloud services for delivering, optimizing and securing online content and business applications. Its solutions include delivery of conventional content on websites to tools that support the delivery and operation of cloud-based applications, as well as security solutions and live and on-demand streaming video capabilities. The company was founded by Frank Thomson Leighton, Jonathan Seelig, Randall Kaplan and Daniel Mark Lewin on August 20, 1998 and is headquartered in Cambridge, MA.

Public companies mentioned herein: Akamai (AKAM), Apple (AAPL), Facebook (FB), Level 3 (LVLT), Amazon (AMZN), Imperva (IMPV) and Rackspace (RAX).

Highlights

Akamai provides content delivery services for media companies, site acceleration for e-commerce companies and banks and DDoS security services to various verticals. Management has said that the company can continue to grow the top line at a 15-20% CAGR and that trends including OTT video, e-commerce and security provide a strong tailwind to the overall business. Revenue, however, has recently slowed to around 7 percent, with management suggesting the recent slowdown is a one-time event attributable to Apple (AAPL) and Facebook (FB) moving much of their traffic off Akamai’s network and onto their own proprietary networks. Once that one-time event is lapped, the company says mid teens growth should resume. The presenter, however, believes growth will be permanently and materially slower as the CDN business becomes increasingly more commoditized and competitive and as site acceleration and security continue to move further out on the penetration curve.

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Idea Discussion

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