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Akamai Technologies, Inc (AKAM) is a leading software-infrastructure business with stocks listed in the US. It opened the day at US$118.65 after a previous close of US$118. During the day the price has varied from a low of USD117.59 to a high of USD118.71. The latest price was USD118.18 (25 minute delay). Akamai Technologies is listed on the NASDAQ. All prices are listed in US Dollars.
How to buy shares in Akamai Technologies
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Akamai Technologies. Find the share by name or ticker symbol: AKAM. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Akamai Technologies reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$116.13, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Akamai Technologies, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Akamai Technologies. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Akamai Technologies key stats
- Compare share trading platforms
- Is Akamai Technologies stock a buy or sell?
- Akamai Technologies performance over time
- Can I short Akamai Technologies shares?
- Is Akamai Technologies suitable for ethical investing?
- Are Akamai Technologies shares over-valued?
- Akamai Technologies's financials
- How volatile are Akamai Technologies shares?
- Does Akamai Technologies pay a dividend?
- Other common questions
Akamai Technologies share priceUse our graph to track the performance of AKAM stocks over time.
Akamai Technologies shares at a glance
|52-week range||US$92.64 - US$121.11|
|50-day moving average||US$111.5663|
|200-day moving average||US$105.7816|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||US$3.559|
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Is it a good time to buy Akamai Technologies stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Akamai Technologies price performance over time
|1 month (2021-05-14)||4.44%|
|3 months (2021-03-16)||17.93%|
|6 months (2020-12-16)||13.07%|
|1 year (2020-06-16)||18.13%|
|2 years (2019-06-14)||50.32%|
|3 years (2018-06-15)||44.17%|
|5 years (2016-06-16)||120.03%|
Is Akamai Technologies under- or over-valued?
Valuing Akamai Technologies stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Akamai Technologies's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Akamai Technologies's P/E ratio
Akamai Technologies's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 33x. In other words, Akamai Technologies shares trade at around 33x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Akamai Technologies's PEG ratio
Akamai Technologies's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.8401. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Akamai Technologies's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Akamai Technologies's EBITDA
Akamai Technologies's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$1.1 billion.
The EBITDA is a measure of a Akamai Technologies's overall financial performance and is widely used to measure a its profitability.
Akamai Technologies financials
|Revenue TTM||US$3.3 billion|
|Operating margin TTM||22.22%|
|Gross profit TTM||US$2.1 billion|
|Return on assets TTM||6.16%|
|Return on equity TTM||14.75%|
|Market capitalisation||US$19.2 billion|
TTM: trailing 12 months
Shorting Akamai Technologies shares
There are currently 8.4 million Akamai Technologies shares held short by investors – that's known as Akamai Technologies's "short interest". This figure is 0.3% down from 8.5 million last month.
There are a few different ways that this level of interest in shorting Akamai Technologies shares can be evaluated.
Akamai Technologies's "short interest ratio" (SIR)
Akamai Technologies's "short interest ratio" (SIR) is the quantity of Akamai Technologies shares currently shorted divided by the average quantity of Akamai Technologies shares traded daily (recently around 1.7 million). Akamai Technologies's SIR currently stands at 4.84. In other words for every 100,000 Akamai Technologies shares traded daily on the market, roughly 4840 shares are currently held short.
However Akamai Technologies's short interest can also be evaluated against the total number of Akamai Technologies shares, or, against the total number of tradable Akamai Technologies shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Akamai Technologies's short interest could be expressed as 0.05% of the outstanding shares (for every 100,000 Akamai Technologies shares in existence, roughly 50 shares are currently held short) or 0.0592% of the tradable shares (for every 100,000 tradable Akamai Technologies shares, roughly 59 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Akamai Technologies.
Find out more about how you can short Akamai Technologies stock.
Akamai Technologies's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Akamai Technologies.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Akamai Technologies's total ESG risk score
Total ESG risk: 19.16
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Akamai Technologies's overall score of 19.16 (as at 12/31/2018) is pretty good – landing it in it in the 25th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Akamai Technologies is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Akamai Technologies's environmental score
Environmental score: 2.02/100
Akamai Technologies's environmental score of 2.02 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Akamai Technologies is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Akamai Technologies's social score
Social score: 8.8/100
Akamai Technologies's social score of 8.8 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Akamai Technologies is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Akamai Technologies's governance score
Governance score: 6.34/100
Akamai Technologies's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that Akamai Technologies is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Akamai Technologies's controversy score
Controversy score: 1/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Akamai Technologies scored a 1 out of 5 for controversy – the highest score possible, reflecting that Akamai Technologies has managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||19.16|
|Total ESG percentile||25.06|
|Environmental score percentile||1|
|Social score percentile||1|
|Governance score percentile||1|
|Level of controversy||1|
Akamai Technologies share dividends
We're not expecting Akamai Technologies to pay a dividend over the next 12 months.
Akamai Technologies share price volatility
Over the last 12 months, Akamai Technologies's shares have ranged in value from as little as US$92.64 up to US$121.11. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Akamai Technologies's is 0.412. This would suggest that Akamai Technologies's shares are less volatile than average (for this exchange).
Akamai Technologies overview
Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. The company offers cloud and enterprise security solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics; and edge compute solutions to enable developers to deploy and distribute code at the edge. In addition, the company offers carrier offerings, including cyberthreat protection, parental controls, DNS infrastructure and content delivery solutions; and an array of service and support to assist customers with integrating, configuring, optimizing, and managing its offerings. It sells its solutions through direct sales and service organizations, as well as through various channel partners. Akamai Technologies, Inc. has a strategic partnership with Queue-It to deliver a cure for Covid vaccine registration. The company was founded in 1998 and is headquartered in Cambridge, Massachusetts.
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