Akamai Earnings: Focus on Edge Computing as Results Are Steady; Shift Away From Delivery Continues

Akamai reported a strong fourth quarter. Management’s 2024 outlook anticipates decelerating security and compute growth and minimal margin expansion, which may have disappointed the market but shouldn’t be surprising, considering the size these businesses have attained and the investment the firm is putting into them. We’re enthusiastic about the continuing success of security and compute and how they have minimized the importance of the firm’s declining content delivery business. We’re raising our fair value estimate to $105 from $95.