Akamai Earnings: Brutal CDN Performance and Guidance Cut Hit Stock, but Growth Areas Look Phenomenal

Despite decent first-quarter results, Akamai’s stock took a tumble after releasing its earnings, as it slashed its full-year guidance. The firm reduced its outlook for sales growth by nearly half despite a small acquisition, brought down margin expectations, and is now anticipating only 0%-4% earnings per share growth, down from 7%-11%. However, behind ostensibly terrible 2024 dynamics is a business that appears to be gaining strength in the areas that Akamai’s future is built upon.