Akamai Technologies Stock Intrinsic Value – AKAMAI TECHNOLOGIES Reports Earnings Results for Third Quarter of FY2023
November 22, 2023
🌥️Earnings Overview
On November 7, 2023, AKAMAI TECHNOLOGIES ($NASDAQ:AKAM) reported its financial results for the third quarter of FY2023 which ended on September 30, 2023. For the quarter, total revenue was USD 965.5 million – a 9.5% increase from the year before – and net income was USD 160.5 million, showing a 48.4% increase from the same period one year prior.
Share Price
The stock opened at $109.5 and closed at $108.9, which was an increase of 0.4% from the previous closing price of 108.4. Analysts have attributed the earnings results to its strong presence in the content delivery and digital experience market, which has helped the company maintain a steady stream of revenue. AKAMAI TECHNOLOGIES has long been a leader in the content delivery and digital experience market, and its latest earnings report reaffirms this leadership. Overall, AKAMAI TECHNOLOGIES’ performance in the third quarter of FY2023 was very positive, with a strong showing in both revenue and profits.
This news has been met with optimism from investors, as the company’s stock price rose in response to the earnings report. The company remains focused on continuing to provide high-quality services to its customers and is well-positioned to capitalize on opportunities for growth 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 Intrinsic Value
At GoodWhale, we have carried out a detailed analysis of AKAMAI TECHNOLOGIES‘s fundamentals. After thorough research, we have determined that the fair value of AKAMAI TECHNOLOGIES’s share is around $104.9, calculated by our proprietary Valuation Line. Currently, AKAMAI TECHNOLOGIES’s stock is trading at $108.9, which is a fair price that is slightly overvalued by 3.9%. More…
Peers
The competition between Akamai Technologies Inc and its competitors is fierce. Media Links Co Ltd, Cloudflare Inc, Rumble Inc are all vying for market share in the content delivery network (CDN) industry. Akamai has a strong foothold in the market, but its competitors are challenging Akamai’s dominance.
– Media Links Co Ltd ($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 reported strong results for their third quarter of FY2023, with total revenue increasing 9.5% and net income growing 48.4% year-over-year. This indicates that the company is performing well and is on track for continued growth. For investors, Akamai Technologies provides a solid opportunity for long-term investments with strong returns. The company’s high-performance cloud computing solutions make it a leader in the industry, with brand recognition and customer loyalty helping to ensure steady revenue and profits.
Furthermore, their commitment to innovation and technological progress gives them an edge in the crowded market space. All in all, Akamai Technologies is a great choice for investors looking for growth and stability.
