Back to top

Image: Bigstock

Will the Initiation of New Workflow Capabilities Benefit AKAM Stock?

Read MoreHide Full Article

Akamai Technologies, Inc. (AKAM - Free Report) introduced advanced video workflow capabilities at IBC convention 2024, providing media companies greater flexibility and control over their content delivery chain. It has been steadily expanding its third-party partner network to offer Media organizations a vast pool of software to choose from for each step of their workflow.

AKAM’s media services, which are used by major video streaming services, offer solutions for content preparation, processing, transport, transcoding, digital rights management, ad insertion and more. Earlier this year, AKAM added NVIDIA based GPUs in its cloud portfolio to facilitate creation of a more affordable and resilient media delivery system, which is scalable, fast and reliable.

Several enterprises are aiming to deploy compute resources closer to the end users as it reduces latency and improves responsiveness and overall application performance. However, maintaining a centralized management and control of the process with traditional cloud set up is a challenge. A survey commissioned by Akamai in 2023 suggests that to address the rigidity of traditional cloud set up and high-cost concerns, the media companies are aiming to replace large, legacy cloud providers in favor of more portable and flexible cloud-based set ups.

Akamai’s open and distributed cloud platform supports multi cloud architecture that eliminates the risks of vendor lock in. It provides clients control over every aspect of the media workflow ecosystem and gives access to a vibrant third-party network allowing them to utilize the best products in alignment with evolving requirements. Akamai's massively distributed cloud infrastructure ensures an exceptional price to performance from core to edge by lowering costs like egress fees.

Will This Portfolio Expansion Boost AKAM’s Share Performance?

Major media companies are moving away from centralized cloud models in favor of more portable, scalable cloud native architectures. This emerging trend will boost prospects for AKAM’s massive and globally distributed cloud platform. However, growing competition in cloud, content delivery network and security spaces remain a concern.

AKAM’s Stock Price Movement

The stock has declined 6.7% in the past year against the industry’s growth of 14%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Akamai currently carries a Zacks Rank #3 (Hold).

Arista Networks, Inc. (ANET - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 8.25%. It is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises.

Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of strong global network of more than 100 distributors and master resellers improved its UI’s visibility for future demand and inventory management techniques.

Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes the process easier for organizations to provide analytical insights and decision support.

Published in