Akamai lays off 5% of workforce, analyst ups price target

|About: Akamai Technologies, Inc. (AKAM)|By:, SA News Editor

Akamai’s (NASDAQ:AKAM) earnings call includes the announcement that the company laid off 400 people or about 5% of the workforce.

The layoffs began at the end of 2017 and continued on this week.

CEO Tom Leighton: “It’s important to note that while we’ve made reductions in some areas of the business, we are also investing in areas that can return greater value going forward” including security and IoT.

Post-earnings analyst actions: DA Davidson raises its Akamai Tech price target from $57 to $64 (% upside on yesterday’s close).

Firm notes that Akamai will continue cost reduction to stay price competitive and to continue security investments but thinks Akamai will (after several quarters) emerge from the transition as a stronger, more diversified company.

Analyst source: Briefing.com.

Akamai shares are up 3.9%.

Previously: Akamai Technologies +5.3% after Q4 beats (Feb. 6)

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