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Akamai Technologies Stock Leads S&P 500 Decliners Following Weak Outlook
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Shares of Akamai Technologies ( AKAM ) tumbled 20% to lead S&P 500 decliners Friday, as weaker-than-expected forecasts outweighed better-than-expected fourth-quarter results.
After the bell Thursday, the cybersecurity and cloud computing company reported $1.02 billion in revenue, up 3% year-over-year and a tick above Visible Alpha estimates. Adjusted earnings per share (EPS) came in at $1.66, a 2% decline but still better than analysts had expected.
However, Akamai's forward-looking projections overshadowed the Q4 results. The company said it expects current-quarter revenue between $1.00 billion and $1.02 billion and full-year revenue between $4.00 billion and $4.20 billion, both below consensus estimates.
Adjusted EPS is forecast between $1.54 and $1.59 for the first quarter and $6.00 to $6.40 for 2025, below expectations of $1.66 and $6.81, respectively.
Akamai Inks Contract With 'One of the World's Largest Technology Companies'
Also on Thursday, Akamai announced that it has signed a multi-year contract worth more than $100 million with "one of the world's largest technology companies" to "augment and improve" the unidentified client's cloud infrastructure services.
Akamai shares sank to their lowest level since May 2023.
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