Akamai Technologies Inc Stock Price, News & Analysis

Akamai Technologies (NASDAQ: AKAM) announced enhancements to its managed security services on April 4, 2023, aimed at bolstering customer defenses against sophisticated cyber threats. The updates include increased access to security experts, reduced pricing on additional managed services, and a new premium support tier providing personalized assistance. The financial services sector has seen a substantial rise in web application attacks, indicating heightened security needs. The new offerings will be available from April 6, 2023, with aims to improve customer experience and escalation paths during security incidents.

Akamai Technologies (NASDAQ: AKAM) announced a new report titled Attack Superhighway: Analyzing Malicious Traffic in DNS, revealing that 10-16% of organizations showed signs of network breaches over the past year. The report highlights nearly seven trillion daily DNS requests and categorizes attacks as malware, phishing, and command/control. Notably, 26% of affected devices attempted to connect to initial access brokers, while QSnatch botnets targeted vulnerable network-attached storage devices. The report underscores significant threats posed by cybercrime, including various regional attack trends, and emphasizes the importance of proactive vulnerability management.

Akamai Technologies (NASDAQ: AKAM) announced the launch of Akamai Hunt and Agentless Segmentation services on March 7, 2023. These innovations aim to enhance security by reducing attack surfaces and improving threat remediation for customers. Akamai Hunt integrates global threat data to identify evasive risks, while Agentless Segmentation addresses security challenges for IoT and OT devices lacking host-based software. Ransomware caused over $20 billion in damages in 2021, emphasizing the need for advanced security measures. Both services will empower organizations to implement Zero Trust frameworks effectively.

Akamai Technologies (NASDAQ: AKAM) announced on March 2, 2023, a definitive agreement to acquire Ondat, a leading cloud-based storage technology provider. Ondat specializes in Kubernetes-native platforms, enhancing Akamai's ability to run stateful applications seamlessly across diverse cloud environments. This acquisition aims to strengthen Akamai's cloud computing offerings and integrate advanced storage capabilities into its Akamai Connected Cloud platform, which serves over 4,100 locations globally. The transaction is expected to close in Q1 2023 with no significant impact on Akamai's financial guidance for the year.

Akamai Technologies (NASDAQ: AKAM) reported its fourth quarter and full-year financial results for 2022. The fourth quarter revenue reached $928 million, up 2% YoY, with security and compute revenue growing 18% YoY. GAAP EPS for Q4 was $0.82, down 15% YoY. For the full year, revenue totaled $3.617 billion, a 4% increase YoY, while GAAP EPS was $3.26, down 17%. The company emphasized robust demand for its security solutions, although GAAP operating income saw a 14% decrease. Cash from operations was $341 million in Q4, representing 37% of revenue, with a total of $1.275 billion for the year.

Akamai Technologies (NASDAQ: AKAM) announced the launch of Akamai Connected Cloud, a comprehensive edge and cloud platform aimed at enhancing cloud computing, security, and content delivery. This initiative includes the introduction of three new enterprise-scale core cloud sites within the U.S. and Europe, expected to launch by the end of Q2 2023. Additionally, Akamai plans to roll out over 50 distributed sites to improve cloud access in underserved areas. A new pricing model aims to reduce cloud egress costs.

The company is also emphasizing compliance with new security standards, enhancing customer trust and service interoperability.

Akamai Technologies and FS-ISAC have released a report highlighting a significant rise in DDoS attacks aimed at the financial sector. In 2022, there was a 22% increase in DDoS attacks against financial firms, with Europe seeing an alarming 73% surge. The report underscores that DDoS attacks are increasingly used as a political tool, particularly in the context of global conflicts like the Russia-Ukraine war. Important findings include the emergence of extortion tactics within DDoS campaigns and their potential to serve as a cover for more serious cyberattacks. The report emphasizes the need for financial institutions to update their cybersecurity strategies in light of these evolving threats.