Report
Alex Zhao
EUR 147.86 For Business Accounts Only

Akamai occupies a profitable niche but we doubt its long-term growth potential due to CDN insourcing

Akamai Technology posted solid third-quarter results, thanks to impressive growth in its performance and security solution, or PSS, segment that more than offset an ongoing decline in the media delivery solution, or MDS, business. We will likely raise the fair value estimate to $44 per share from $41. However, we do not believe the firm has developed a substantial competitive advantage in enterprise cloud offerings yet, given that these niches are highly competitive with a variety of strong incu...
Underlying
Akamai Technologies Inc.

Akamai Technologies provides solutions for securing, delivering and optimizing content and business applications over the Internet. The company provides online solutions for the security, delivery and acceleration of websites and applications. The company's solutions include: cloud security solutions; enterprise security solutions; web and mobile performance solutions; media delivery solutions; carrier solutions; and services and support solutions, which provides an array of service and support offerings that are designed to assist its customers with integrating, configuring, optimizing and managing its main offerings.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Alex Zhao

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