Akamai Technologies Inc (NASDAQ: AKAM) needs to merge with the likes of Cloudflare or Fastly, as per Jim Cramer. Shares of the Cambridge-headquartered firm are down 8.0% on Friday.
Cramer shares view on Akamai Technologies
The Mad Money host was all praise for the cybersecurity unit of $AKAM on CNBC’s “Squawk Box” today.
But its content delivery network, he added, is “old fashioned” and, therefore, should be consolidated. He recommended letting Matthew Prince – the chief executive of Cloudflare to “take it over”.
Jim Cramer expects Akamai Technologies to be “worth a great deal if you offload the poor division]”.
He even called its cybersecurity business a “crown jewel” and expressed disappointment in the fact that $AKAM is not currently getting any credit for that segment.
Watch here: https://www.youtube.com/embed/-pJyw3qhvSA?feature=oembed
Highlights of Akamai Q1 earnings release
Cramer’s remarks follow the quarterly earnings report that Akamai Technologies posted last night.
The Nasdaq-listed firm saw its delivery revenue tank 11% on a year-over-year basis but the security revenue popped a whopping 21% to $491 million in Q1, as per its press release.
Note that the cybersecurity business of $AKAM recently won a contract from the U.S. Army for “tactical identity as part of zero trust push”.
Akamari stock is down at writing also because a Citi analyst lowered her price target on it to $110 after the tech company negatively revised its full-year guidance to reflect a “strengthening U.S. dollar, a large social media customer optimising costs and slowing traffic growth across the industry” on Friday.
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