Topic: How To Invest

Q: What are your thoughts on the long-term prospects of Akamai Technologies? Thanks.

Article Excerpt

A: Akamai Technologies Inc., $92.32, symbol AKAM on Nasdaq (Shares outstanding: 160.3 million; Market cap: $14.9 billion; www.akamai.com), provides services for the delivery of content (video streaming) and business processes over the Internet. The company operates one of the world’s largest and most widely used on-demand computing platforms, with more than 325,000 servers and 1,435 networks in 135 countries. Its customers include 56% of the Fortune 500. In March 2022, Akamai completed the acquisition of Linode LLC for $900 million in cash. Linode is a Philadelphia-based infrastructure-as-a-service (IaaS) platform provider. The company provides a cloud computing platform to clients in 185 countries worldwide. There are currently about 150,000 active users on its platform. Linode has annual revenue of about $100 million. That firm provides services similar to big rivals like Amazon.com Inc.’s AWS subsidiary and Google Cloud Services. Akamai now plans to combine Linode’s developer-friendly cloud computing capabilities with its own platform and security services. Between 2017 and 2021, Akamai’s total revenue increased 38.3%, from…

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