Akamai: Setting Up As A Long-Term Winner

Summary

• Akamai security business segment is well-positioned to profit from a post-pandemic growth boost as the industry is a secular growth vector.
• The recently announced acquisition in cloud computing is likely to significantly increase Akamai’s revenue growth rate over the coming years.
• The decision to suspend its sales efforts in Russia and Belarus will not have a significant impact.
• EPS growth rate accelerated to 30.71% CAGR and operating margin to 24.77% over the past 3 years.
• Akamai’s stock price is likely undervalued by at least 29.50% and showed some significant relative strength and resilience, even in more volatile markets.

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Investment thesis

Akamai Technologies, Inc. (NASDAQ:AKAM) is a market leader in content delivery networks (CDN) and is significantly growing in the cyber security industry. The COVID-19 pandemic had some opposite impact on its business, while temporarily slowing down sales in its security segment, it

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