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How to buy Akamai Technologies stock | 109.41

Own Akamai Technologies stock in just a few minutes.

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Akamai Technologies, Inc is a software—infrastructure business based in the US. Akamai Technologies shares (AKAM) are listed on the NASDAQ and all prices are listed in US Dollars. Akamai Technologies employs 7,951 staff and has a trailing 12-month revenue of around USD$3 billion.

How to buy shares in Akamai Technologies

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Akamai Technologies. Find the stock by name or ticker symbol: AKAM. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Akamai Technologies reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$109.41, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Akamai Technologies, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Akamai Technologies. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Akamai Technologies's share price?

Since the stock market crash in March caused by coronavirus, Akamai Technologies's share price has had significant positive movement.

Its last market close was USD$109.41, which is 8.13% up on its pre-crash value of USD$100.52 and 45.53% up on the lowest point reached during the March crash when the shares fell as low as USD$75.1801.

If you had bought USD$1,000 worth of Akamai Technologies shares at the start of February 2020, those shares would have been worth USD$912.71 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,167.40.

Akamai Technologies share price

Use our graph to track the performance of AKAM stocks over time.

Akamai Technologies shares at a glance

Information last updated 2020-10-20.
Latest market close USD$109.41
52-week range USD$79.81 - USD$120
50-day moving average USD$110.6169
200-day moving average USD$106.4773
Wall St. target price USD$124.65
PE ratio 33.5485
Dividend yield N/A (0%)
Earnings per share (TTM) USD$3.3

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Akamai Technologies stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Akamai Technologies price performance over time

Historical closes compared with the close of $109.41 from 2020-10-19

1 week (2020-11-25) 5.47%
1 month (2020-11-02) 14.19%
3 months (2020-09-02) -8.50%
6 months (2020-06-02) 3.68%
1 year (2019-12-02) 27.79%
2 years (2018-11-30) 59.14%
3 years (2017-12-01) 96.11%
5 years (2015-12-02) 95.13%

Is Akamai Technologies under- or over-valued?

Valuing Akamai Technologies stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Akamai Technologies's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Akamai Technologies's P/E ratio

Akamai Technologies's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 34x. In other words, Akamai Technologies shares trade at around 34x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Akamai Technologies's PEG ratio

Akamai Technologies's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.6891. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Akamai Technologies's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Akamai Technologies's EBITDA

Akamai Technologies's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$935.6 million.

The EBITDA is a measure of a Akamai Technologies's overall financial performance and is widely used to measure a its profitability.

Akamai Technologies financials

Revenue TTM USD$3 billion
Operating margin TTM 21.15%
Gross profit TTM USD$1.9 billion
Return on assets TTM 6.4%
Return on equity TTM 14.85%
Profit margin 17.82%
Book value $24.007
Market capitalisation USD$17.9 billion

TTM: trailing 12 months

Shorting Akamai Technologies shares

There are currently 10.3 million Akamai Technologies shares held short by investors – that's known as Akamai Technologies's "short interest". This figure is 2.8% down from 10.6 million last month.

There are a few different ways that this level of interest in shorting Akamai Technologies shares can be evaluated.

Akamai Technologies's "short interest ratio" (SIR)

Akamai Technologies's "short interest ratio" (SIR) is the quantity of Akamai Technologies shares currently shorted divided by the average quantity of Akamai Technologies shares traded daily (recently around 1.5 million). Akamai Technologies's SIR currently stands at 6.64. In other words for every 100,000 Akamai Technologies shares traded daily on the market, roughly 6640 shares are currently held short.

However Akamai Technologies's short interest can also be evaluated against the total number of Akamai Technologies shares, or, against the total number of tradable Akamai Technologies shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Akamai Technologies's short interest could be expressed as 0.06% of the outstanding shares (for every 100,000 Akamai Technologies shares in existence, roughly 60 shares are currently held short) or 0.0722% of the tradable shares (for every 100,000 tradable Akamai Technologies shares, roughly 72 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Akamai Technologies.

Find out more about how you can short Akamai Technologies stock.

Akamai Technologies's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Akamai Technologies.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Akamai Technologies's total ESG risk score

Total ESG risk: 19.16

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Akamai Technologies's overall score of 19.16 (as at 10/01/2020) is pretty good – landing it in it in the 25th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Akamai Technologies is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Akamai Technologies's environmental score

Environmental score: 2.02/100

Akamai Technologies's environmental score of 2.02 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Akamai Technologies is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Akamai Technologies's social score

Social score: 8.8/100

Akamai Technologies's social score of 8.8 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Akamai Technologies is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Akamai Technologies's governance score

Governance score: 6.34/100

Akamai Technologies's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that Akamai Technologies is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Akamai Technologies's controversy score

Controversy score: 1/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Akamai Technologies scored a 1 out of 5 for controversy – the highest score possible, reflecting that Akamai Technologies has managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Akamai Technologies, Inc was last rated for ESG on: 2020-10-01.

Total ESG score 19.16
Total ESG percentile 25.06
Environmental score 2.02
Environmental score percentile 1
Social score 8.8
Social score percentile 1
Governance score 6.34
Governance score percentile 1
Level of controversy 1

Akamai Technologies share dividends

We're not expecting Akamai Technologies to pay a dividend over the next 12 months.

Akamai Technologies share price volatility

Over the last 12 months, Akamai Technologies's shares have ranged in value from as little as $79.81 up to $120. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Akamai Technologies's is 0.3144. This would suggest that Akamai Technologies's shares are less volatile than average (for this exchange).

Akamai Technologies overview

Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. It provides Web Application Protector to safeguard web assets from web application and distributed denial of service; Kona Site Defender, a cloud security solution; Bot Manager to identify bots and categorize bots based on business or IT impact; Edge DNS, which translates human-readable domain names into numerical IP addresses; Site Shield that prevents attacker from directly targeting the application origin and forces traffic to go through its network, where attack can be better detected and mitigated; identity Cloud, a customer identity access management solution; Prolexic Routed to protect web- and IP-based application; and Client Reputation that assigns risk scores to malicious IP address and enables customers to take action on individual clients. It also offers Enterprise Application Access that enables adaptive access to application; Enterprise Threat Protector to enable enterprise security teams to identify, block, and mitigate targeted attack; Ion, a suite of intelligent performance optimization tool and control; Dynamic Site Accelerator to accelerate and secure interactive website; Image Manager that automatically optimizes online images; CloudTest to conduct load testing and other analysis of website in a pre-production environment; and mPulse that provides real-time website performance data for customers to enhance their digital experiences. In addition, the company provides Aura Managed CDN, DNS Infrastructure, and security and personalization service; and adaptive delivery, download delivery, media service live, and media analytic solutions, as well as NetStorage, a cloud storage solution. It sells its solutions through direct sales and service organizations; and various channel partners. The company was founded in 1998 and is headquartered in Cambridge, Massachusetts.

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