Akamai Technologies Stock Plunges to $91.50 in 2025 Following Slower Traffic Growth and Lowered Guidance
Akamai Technologies shares declined sharply in premarket trading in 2025 after the company reported quarterly earnings above expectations but issued a cautious outlook for the year, citing a stronger dollar, cost rationalization by a major social media client, and industry-wide slowing traffic growth.
Key Insights on Akamai Technologies Stock Movement
Highlights
- Akamai Technologies (AKAM) stock dropped over 10% premarket in 2024 after the company’s current-quarter and full-year guidance missed Wall Street estimates.
- Despite beating earnings per share forecasts with $1.64 vs. $1.61 consensus, revenue of $987 million fell slightly short of the expected $989 million due to weaker legacy content delivery offset by gains in security software and cloud computing.
- The company projects Q2 2024 revenue between $967 million and $986 million and adjusted EPS between $1.51 and $1.56, both below analyst expectations of $1 billion and $1.63 per share.
- Full-year 2024 guidance anticipates net sales of $3.95 billion to $4.02 billion and adjusted EPS of $6.20 to $6.40, underperforming the consensus of $4.08 billion and $6.73 per share.
- Factors impacting outlook include a stronger U.S. dollar, cost rationalization by a large social media customer, and slowing industry traffic growth, partially offset by improvements in security and compute segments.
Chart Analysis and Support Levels to Watch
Since peaking above $129 in early 2024, Akamai shares have corrected approximately 20%, with a bearish death cross forming as the 50-day moving average has crossed below the 200-day moving average, signaling potential further downtrend.
Investors should monitor the crucial support zone between $89 and $94, reflecting prior price action from late 2022 to mid-2023, where buying interest could emerge.
As of early trading, Akamai stock trades near $91.50, down 10.7%.
Disclaimer: The information presented on ZAMONA is for educational and informational purposes only and does not constitute financial advice. Please consult with a professional before making investment decisions.
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