AKAM

Akamai Technologies Inc

TMT


Presented:02/05/2018
Price:$62.81
Cap:$10.77B
Current Price:$103.29
Cap:$15.65B

Presented

Date02/05/2018
Price$62.81
Market Cap$10.77B
Ent Value$8.26B
P/E Ratio37.84x
Book Value$19.28
Div Yield0%
Shares O/S171.51M
Ave Daily Vol2,350,154
Short Int6.23%

Current

Price$103.29
Market Cap$15.65B
Akamai Technologies, Inc. provides cloud services for delivering, optimizing and securing content and business applications over the Internet. Its products offers web and mobile performance solutions, cloud security solutions, enterprise solutions, network operator solutions, media delivery solutions and services and support solutions. The company engages in content delivery network, or CDN, services to make the Internet fast, reliable and secure. Akamai Technologies was founded by Frank Thomson Leighton, Jonathan Seelig, Randall S. Kaplan, and Daniel Mark Lewin on August 20, 1998 and is headquartered in Cambridge, MA.

Publicly traded companies mentioned herein: Akamai Technologies Inc (AKAM), Amazon.com Inc (AMZN)

Highlights

The presenter is short shares of Akamai (AKAM), seeing structural headwinds for the company as content delivery becomes more commoditized and increased competition drives down pricing. The presenter believes AKAM is set to see margins compress, and thinks current valuation is too rich given these dynamics. He believes recent activist involvement from Elliott Management can lead to some cost rationalization, but thinks the bulk of AKAM’s expenses will remain in place as the company is forced to reinvest in the business. The presenter models $2.00 in non-GAAP earnings over the next two years, and applies a 20x multiple for a ~$40 price target.

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Idea Discussion

Commentor 1 - 2 weeks ago

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