Where Is Akamai Spending Its Cash?
Akamai’s major technology clients are reducing their reliance on the company in favor of their own Content Delivery Networks. Revenue from Akamai’s six biggest technology companies has come down from 18% of revenue to 11% over the past year. Amid this shift, which appears a permanent one, watchful spending of cash is imperative. Akamai continues to allocate a good amount to its capital expenditure in order to build-out and upgrade the network of servers it required to retain its existing clients.
The company is also focused on placating shareholders stung by the impact its slowing growth has had on the stock, which is off almost 22% from the prior year level. To this end, the company has undertaken significant buybacks, returning over $700 million to shareholders in the last three years. And we expect Akamai to return another $600 million through share buybacks over the next couple of years.
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?
- 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
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