AKAM Stock Falls -5.6% In 7-Day Streak On Analyst Guidance Warnings

-1.51%
Downside
88.12
Market
86.79
Trefis
AKAM: Akamai Technologies logo
AKAM
Akamai Technologies

Akamai Technologies (AKAM) stock hit day 7-day losing streak, with cumulative losses over this period amounting to a -5.6%. The company market cap has crashed by about $719 Mil over the last 7 days, and currently stands at $12 Bil.

The stock has YTD (year-to-date) return of 2.5% compared to 0.2% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.

What Triggered The Slide?

[1] Analyst and Sector Headwinds

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  • Morgan Stanley warns of 2026 guidance risks for software stocks
  • Keybanc upgraded stock but with a cautious tone on compute growth
  • Impact: Sustained Selling Pressure, Negative Investor Sentiment

Opportunity or Trap?

Below is our take on valuation.

There is a near-equal mix of good and bad in AKAM stock given its overall Moderate operating performance and financial condition. This is aligned with the stock’s Moderate valuation because of which we think it is Fairly Priced (For details, see Buy or Sell AKAM).

But here is the real interesting point.

You are reading about this -5.6% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.

Returns vs S&P 500

The following table summarizes the return for AKAM stock vs. the S&P 500 index over different periods, including the current streak:

Return Period AKAM S&P 500
1D -2.5% 0.2%
7D (Current Streak) -5.6% -0.3%
1M (21D) -2.0% 0.4%
3M (63D) 9.1% 2.1%
YTD 2026 -2.5% 0.2%
2025 -8.8% 16.4%
2024 -19.2% 23.3%
2023 40.4% 24.2%

Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: AKAM Dip Buyer Analysis.

Gains and Losses Streaks: S&P 500 Constituents

There are currently 7 S&P constituents with 3 days or more of consecutive gains and 111 constituents with 3 days or more of consecutive losses.
 

Consecutive Days # of Gainers # of Losers
3D 2 49
4D 2 30
5D 1 24
6D 2 2
7D or more 0 6
Total >=3 D 7 111

 
 
Key Financials for Akamai Technologies (AKAM)

Last 2 Fiscal Years:

Metric FY2023 FY2024
Revenues $3.8 Bil $4.0 Bil
Operating Income $703.4 Mil $636.4 Mil
Net Income $547.6 Mil $504.9 Mil

Last 2 Fiscal Quarters:

Metric 2025 FQ2 2025 FQ3
Revenues $1.0 Bil $1.1 Bil
Operating Income $155.8 Mil $166.0 Mil
Net Income $103.6 Mil $140.2 Mil

The losing streak AKAM stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.