Akamai Shares Fall on Slowing 2025 Growth

Dow Jones

22 Feb

By Katherine Hamilton

Akamai Technologies shares slipped after the company said it expects revenue growth this year to be lower than Wall Street had anticipated.

The stock fell 15% to $83.81 Friday morning, hitting a 52-week low earlier in the session and on pace for its largest one-day percentage decline since 2017.

The cloud-computing and cybersecurity provider said late Thursday that it expects 2025 revenue at $4 billion to $4.2 billion, or a 2.7% increase at the midpoint--below the 6.8% climb to $4.26 billion that analysts polled by FactSet had predicted.

Akamai also said it expects 2025 adjusted earnings per share of $6 to $6.40, behind the $6.82 Wall Street had been forecasting.

The company expects headwinds from TikTok, which it said was its largest customer for content-delivery network services. The social-media platform is planning to move its content delivery internally, likely shaving off 1 to 2 percentage points of Akamai's revenue growth in 2025, D.A. Davidson analyst Rudy Kessinger said.

Akamai also plans to move about $50 million of its cloud-computing business to partners, which is expected to reduce revenue growth in that business to around 15%, down from 25% in 2024. The company said it wants to focus more on its core business.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 21, 2025 11:16 ET (16:16 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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