Akamai Story

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AKAM -- USA Stock  

USD 105.38  0.36  0.34%

Akamai Technologies Working Capital is relatively stable at the moment as compared to the past year. The company's current value of Working Capital is estimated at 1.18 Billion. Interest Coverage is expected to hike to 16.90 this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to nearly 1 B. Akamai Technologies is scheduled to announce its earnings tomorrow. The next fiscal quarter end is expected on the 31st of March 2021. Is technology space attracting new stakeholders, let's check if Akamai Technologies is sending any bullish signals. We will evaluate why recent Akamai Technologies price moves suggest a bounce in April. The company current probability of financial unrest is under 27 percent. Will stakeholders continue to be optimistic, or should we expect a sell-off?
Published over three weeks ago
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Ready to buy vs. sell advice Akamai (NASDAQ:AKAM) based on the new basic indicators?
The firm shows a Beta (market volatility) of 0.2372, which signifies not very significant fluctuations relative to the market. Let's try to break down what Akamai's beta means in this case. As returns on the market increase, Akamai Technologies returns are expected to increase less than the market. However, during the bear market, the loss on holding Akamai Technologies will be expected to be smaller as well. Even though it is essential to pay attention to Akamai Technologies historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Akamai Technologies exposes twenty-one different technical indicators, which can help you to evaluate its performance. Akamai Technologies has an expected return of -0.0752%. Please be advised to confirm Akamai Technologies information ratio, and the relationship between the downside deviation and value at risk to decide if Akamai Technologies stock performance from the past will be repeated at some point in the near future.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Akamai Technologies income statement, its balance sheet, and the statement of cash flows. Potential Akamai Technologies investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Akamai Technologies investors may use each financial statement separately, they are all related. The changes in Akamai Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Akamai Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Akamai Technologies fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Akamai Technologies performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Akamai Technologies shares is the value that is considered the true value of the share. If the intrinsic value of Akamai is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Akamai Technologies.
Please read more on our fundamental analysis page.

Are Akamai Technologies Earnings Expected to grow?

The future earnings power of Akamai Technologies involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Akamai Technologies factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Akamai Technologies stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Akamai expected earnings.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Akamai Technologies, but it might be worth checking our own buy vs. sell analysis

Akamai Technologies Gross Profit

Akamai Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Akamai Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Akamai Technologies Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Breaking down Akamai Technologies Indicators

Institutional investors typically avoid acquiring a high percentage of Akamai Technologies stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Akamai is distributed among investors.

Ownership Allocation

Akamai Technologies retains a total of 163 Million outstanding shares. The majority of Akamai Technologies outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Akamai Technologies to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Akamai Technologies. Please pay attention to any change in the institutional holdings of Akamai Technologies as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.


Institutions
93.55%
Retail Investors4.33
Insiders2.12
Institutions93.55
 2018 2019 2020 2021 (projected)
Long Term Debt to Equity0.270.50.450.36
Interest Coverage22.2936.5716.4616.9

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Akamai Technologies has an asset utilization ratio of 76.52 percent. This denotes that the company is making $0.77 for each dollar of assets. An increasing asset utilization means that Akamai Technologies is more efficient with each dollar of assets it utilizes for everyday operations.


Current Assets
1.8 B
Assets Non Current
4.8 B
Goodwill
1.7 B
Current Assets1.84 Billion21.87
Assets Non Current4.76 Billion56.66
Goodwill1.72 Billion20.46
Tax Assets84.44 Million1.01

Akamai showing trail of lower volatility

The coefficient of variation is down to -7413.35 as of today. Akamai Technologies exhibits very low volatility with skewness of -1.7 and kurtosis of 7.47. However, we advise investors to further study Akamai Technologies technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Akamai Technologies' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Akamai Technologies' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Akamai Technologies

While some companies within the software?infrastructure industry are still a little expensive, even after the recent corrections, Akamai Technologies may offer a potential longer-term growth to stakeholders. To conclude, as of the 21st of March 2021, we believe that at this point, Akamai Technologies is undervalued with below average probability of distress within the next 2 years. Our overall buy-hold-sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Akamai Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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