Akamai Earnings: Outlook for Compute and Security Is Strong; Raising FVE on Upgraded Moat Rating

Akamai’s fourth-quarter and full-year 2024 results revealed steady growth in the firm’s computing and security businesses, which now account for over two-thirds of firmwide revenue. Although results aligned with our expectations, after taking a fresh look at the company, we’ve upgraded our moat rating for Akamai to narrow from none. We think the firm has continued to drive value through its security and computing businesses, enhancing the value of its legacy content delivery business and ultimately increasing the stickiness of its platform. We’ve also raised our fair value estimate to $135 from $100 to account for our view of the firm’s long-term competitive position.