Akamai: How Much Can Online Shopping Content Delivery Segment Add To Revenues In The Next Five Years?

Online shopping content delivery, the most important segment for Akamai, can add about $450 million to the company’s topline in the next five years. At present, the segment accounts for about 37% of Akamai’s overall revenues and this figure is expected to touch 39% by 2021, which essentially means that we estimate online shopping content delivery revenue growth to outpace the growth in other divisions.

Increasing Internet and broadband penetration and sustained growth in e-commerce shopping are likely to keep Akamai’s online shopping content delivery networks running. Internet penetration in the U.S. currently stands at around 85% with 90% of those using broadband. We expect the latter figure to get near 100% over the next six-seven years. E-commerce retail in the U.S. is growing strongly, totaling at $340 billion, up from $197 billion in 2011. The market is expected to reach $540 billion over the next three-four years, and the growth in web traffic should drive Akamai’s content delivery network.

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?

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