Akamai: 4 Reasons To Buy

Summary

• Akamai is facing increased competition on its CDN networks due to the entry of major players.
• Akamai's other business segments are growing rapidly, so revenue and earnings growth is still positive.
• Akamai has a high free cash flow margin of 23%. On average, 74% of this is returned to shareholders by share buybacks.
• The high short interest is also beneficial because sooner or later these speculators have to close their short position by buying the shares.
• Analysts expect growth in both revenue and adjusted earnings per share for the next few years. And that really makes the stock worth buying.

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Introduction

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.