This is a step-by-step stock review to answer the question, is Akamai (AKAM) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Akamai (AKAM) stock a good buy?
1. Akamai Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1998: Established by Dr. Tom Leighton and Danny Lewin, originating from MIT’s Computer Science department.
- Early Innovation: Pioneered content delivery network (CDN) technology, enhancing internet speed and reliability.
- IPO in 1999: Went public, quickly becoming a leading internet infrastructure company.
- Global Expansion: Built a vast network of servers, now with over 300,000 servers in more than 130 countries.
- 2000s Growth: Acquired companies like Speedera Networks and Prolexic Technologies to expand services and capabilities.
- Enhanced Security: Introduced advanced web security solutions to protect against DDoS attacks, malware, and data breaches.
- Cloud Services: Expanded into cloud computing and edge computing, providing scalable solutions for businesses.
- Streaming Services: Became a key player in live and on-demand video streaming, supporting major events and broadcasters.
- Corporate Responsibility: Focused on sustainability with initiatives to reduce carbon footprint and improve energy efficiency in data centers.
- Innovation Leadership: Continues to innovate with developments in AI, machine learning, and IoT solutions.
- Customer Focus: Serves diverse industries, including media, finance, healthcare, and e-commerce, ensuring fast and secure online experiences.
- Mission Statement: Dedicated to making the internet fast, reliable, and secure for businesses and consumers worldwide.
Akamai remains a leader in internet technology, committed to enhancing the digital experience with innovative, secure, and efficient solutions.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 50/100
- MOS: 27%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Akamai (AKAM) makes money:
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Akamai (AKAM) stacks up against other companies.
- SPS Commerce, Inc.(SPSC) – 95
- Payoneer Global Inc. (PAYO) – 94
- Payoneer Global Inc. (PAYOW) – 94
- GigaCloud Technology Inc. (GCT) – 84
- Palo Alto Networks, Inc. (PANW) – 78
- Akamai Technologies, Inc. (AKAM) – 50
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
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To truly know if Akamai is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on TransUnion.