Akamai Leaves Analysts Concerned Following Aggressive Shift To Computing, A Field Dominated By AWS, Azure, GCP


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


  • RBC Capital analyst Rishi Jaluria downgraded Akamai Technologies Inc (NASDAQ:AKAM) from Outperform to Sector Perform and reduced the price target from $100 to $85.
  • The re-rating reflected the shift from Security mix-shift to Compute mix-shift as Security growth slowed.
  • The analyst already had some skepticism post the Linode acquisition. 
  • Still, now Akamai seems to be going all-in on Compute, significantly growing its CapEx (21% of CY23E revenue) and re-allocating ~1,000 employees (10% of the headcount) to Compute.
  • It seems as if Akamai is trying to compete directly with the big hyperscalers Amazon.Com Inc (NASDAQ:AMZNAWSMicrosoft Corp (NASDAQ:MSFTAzureAlphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGLGoogle Cloud Platform mostly on price, which is a challenging value proposition considering their deep moat.
  • Akamai would no longer be a significant cash generator with this seemingly all-in move.
  • Needham analyst Alex Henderson also reiterated a Hold on similar grounds.
  • Price Action: AKAM shares traded lower by 9.69% at $79.28 on the last check Wednesday.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorNewsDowngradesPrice TargetReiterationAnalyst RatingsTechBriefs