Craig-Hallum downgrades Akamai to Hold following ‘disappointing’ guide

As previously reported, Craig-Hallum downgraded Akamai (AKAM) to Hold from Buy with a $90 price target citing several surprises in the company’s “disappointing” FY25 guide. As the firm anticipated, Delivery is showing substantive fundamental improvement, but is now being offset by headwinds elsewhere. Specifically, Craig-Hallum would call out the deceleration taking place in security as the key incremental data point. This slowdown has long-term implications, and the firm believes was underappreciated on the call last night. Beyond security weakness, Compute also saw the surprise exit of substantial legacy business and delivery saw more TikTok headwind than expected.