Summary
Despite Akamai’s technological superiority and scale, the commodity nature of CDN business and the company’s perceived dependence on big tech companies appear to have influenced the stock’s valuation.
Akamai has also been the subject of numerous takeover rumors, to the extent that the markets seem to have given up on the possibility.
Mr. Paul Singer’s entry in the stock did fuel a rally; however, the stock currently trades at abysmally low valuations.
Considering the company’s technical know-how, intellectually distinguished management benefits from the increase in edge adoption and initiatives to diversify in payments technology, the stock looks grossly underpriced.
Akamai (AKAM) is a play on the evolving modes of growing data consumption. The stock has suffered due to the market perception the company's growth has become tied to big internet companies. At the current price levels, the AKAM stock can potentially reward investment ranging from a few months to a couple of years and beyond.
The word ‘Akamai’ means intelligent or clever in Hawaiian
The company is a leader in cloud-based content delivery networks (CDN) used for optimizing delivery of content over the Internet. Akamai has a network of over 200K servers across 143 countries, which are paid for by customers wanting to speed up delivery of their content over the web.
