Akamai Technologies Stock Fair Value – AKAMAI TECHNOLOGIES Reports Strong Earnings Results for FY2023 Q3
November 24, 2023
☀️Earnings Overview
AKAMAI TECHNOLOGIES ($NASDAQ:AKAM) reported their earnings results for the third quarter of fiscal year 2023 on November 7th, 2023. The results, which are based on the September 30th, 2023 figures, show total revenue of USD 965.5 million, a 9.5% year-on-year growth, and reported net income of USD 160.5 million, an increase of 48.4% compared to the same period in the preceding year.
Share Price
On Tuesday, AKAMAI TECHNOLOGIES had a strong performance in its third quarter earnings report for fiscal year 2023, as its stock opened at $109.5 and closed at $108.9, up 0.4% from its previous closing price of 108.4. This marked a continuation of the company’s impressive financial performance as of late, with overall net revenue increasing by 11% on a year-over-year basis. These figures demonstrate that the company is continuing to find success in providing innovative solutions to its customer base.
These positive figures indicate that the company is well-positioned to continue to provide market-leading services and solutions to its customers. In conclusion, AKAMAI TECHNOLOGIES reported strong financial performance in its third quarter earnings report, indicating that the company is well positioned to continue to deliver innovative solutions to its customers in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Akamai Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 3.74k | 515.23 | 15.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Akamai Technologies. More…
| Operations | Investing | Financing |
| 1.3k | -1.63k | 322.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Akamai Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.58k | 5.26k | 28.65 |
Key Ratios Snapshot
Some of the financial key ratios for Akamai Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.2% | -0.2% | 17.0% |
| FCF Margin | ROE | ROA |
| 15.9% | 9.2% | 4.1% |
Analysis – Akamai Technologies Stock Fair Value
At GoodWhale, we performed an analysis of AKAMAI TECHNOLOGIES‘ fundamentals and have come to the conclusion that the fair value of their share is around $104.9, calculated by our proprietary Valuation Line. Currently, AKAMAI TECHNOLOGIES stock is traded at $108.9, which is a fair price that is overvalued by 3.9%. Their long-term performance has been solid, with their stock price consistently remaining above the estimated fair value. Despite this, due to current market conditions, the stock is currently slightly overvalued. More…
Peers
The competition between Akamai Technologies Inc and its competitors is fierce. Media Links Co Ltd, Cloudflare Inc, Rumble Inc are all vying for market share in the content delivery network (CDN) industry. Akamai has a strong foothold in the market, but its competitors are challenging Akamai’s dominance.
– Media Links Co Ltd ($TSE:6659)
Media Links Co Ltd is a Japanese company that specializes in the development and manufacture of equipment for digital audio and video signal transmission. The company has a market cap of 819.24M as of 2022 and a Return on Equity of -29.69%. Media Links Co Ltd is a publicly traded company on the Tokyo Stock Exchange.
– Cloudflare Inc ($NYSE:NET)
Cloudflare is an American web infrastructure and website security company, providing content delivery network services, DDoS mitigation, Internet security, and distributed domain name server services. Its network protects and speeds up millions of websites, APIs, SaaS services, and other properties connected to the Internet.
As of May 2021, Cloudflare had a market capitalization of $12.82 billion. It went public on September 15, 2009, at a price of $15 per share, and closed its first day of trading at $28.79 per share. The company’s stock trades on the New York Stock Exchange under the ticker symbol NET.
Cloudflare has a negative return on equity (ROE) of 19.43%. This is because the company reinvested a significant portion of its earnings back into the business to fuel growth.
– Rumble Inc ($NASDAQ:RUM)
Rumble Inc is a publicly traded company with a market capitalization of 3.8 billion dollars as of 2022. The company has a negative return on equity of 23.68%. Rumble Inc is a provider of online video streaming services. The company was founded in 2004 and is headquartered in San Francisco, California.
Summary
AKAMAI TECHNOLOGIES has seen positive financial results for the third quarter of their 2023 fiscal year. Total revenue was up 9.5% year-on-year to USD 965.5 million, and net income increased 48.4% to USD 160.5 million. Analysts view this as a sign of the company’s financial stability and growth potential.
The company has shown consistent long-term revenue growth, and many believe it has a strong outlook for the near future. For investors, AKAMAI TECHNOLOGIES is an attractive option, offering potential returns as well as a low risk profile.
