A Scenario That Can Add To Akamai’s Value
Faster-than-expected growth in value-added services holds an upside potential of 10% for Akamai. Our base case projects the company’s media content delivery revenue at just over $1 billion for the current year with revenue per Akamai media customer increasing at a compound annual growth rate of 5% between 2015 and 2022.
For the upside case, we project a faster (9%) increase in revenue per Akamai media customer for the same period, which brings our estimate for the media content delivery revenues to $1.2 billion for 2016. With the acquisitions of Prolexic, Cotendo, and Blaze, Akamai has been able to bolster its value-added portfolio and avoid pricing pressure. By leveraging this, the company can command better pricing for its service going forward.
- Akamai Stock Has Seen Little Change Since 2021. Will A Q3 Earnings Beat Drive The Stock Higher?
- What To Expect From Akamai’s Q2 Earnings?
- Cloud Business In Focus As Akamai Reports Q1 Results
- Will Akamai’s Cloud Computing Push Pay Off?
- Up Almost 6% Last Month, Can Akamai Continue Its Run?
- Here’s Why Akamai Stock Has Failed To Outperform The S&P Since 2017
Have more questions about Akamai? See the links below:
- What’s Akamai’s Revenue & Earnings Breakdown Based On Expected 2016 Results?
- What’s Akamai’s Fundamental Value Based On Expected 2016 Results?
- How Has Akamai’s Revenue Composition Changed In The Last Five Years?
- What Has Led To A ~100% Increase In Akamai’s Revenues & EBITDA In The Last Five Years?
- By What Percentage Can Akamai’s Revenues Grow Over the Next Five Years?
- How Are Akamai’s Revenue & EBITDA Composition Expected To Change By 2020?
Notes:
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap |More Trefis Research