CAMBRIDGE, Mass. - Akamai Technologies, Inc. (NASDAQ: NASDAQ:AKAM) has introduced a new feature that integrates Akamai API Security with Akamai Connected Cloud, aiming to bolster the protection of API traffic. The native connector allows customers to directly analyze their cloud traffic for threats and block attacks more efficiently.
The company emphasizes the importance of API security in the current digital landscape, where APIs are fundamental to business innovation but also pose significant security risks if not adequately safeguarded. "Our new native connector provides customers with an easy and effective way to gain visibility into their API traffic and protect against attacks, without impacting performance or incurring additional costs," stated Rupesh Chokshi, Senior Vice President and General Manager, Application Security at Akamai.
The integration is designed to offer a seamless deployment experience and reduce the total cost of ownership by eliminating the need for additional implementation and maintenance. Additionally, it provides a rapid response mechanism to potential attacks by leveraging the capability to block threats directly at the Akamai edge network.
Akamai's API Security is known for its vendor-neutral approach, compatible with over 40 different traffic sources, including cloud environments and web application firewalls. This flexibility ensures that organizations can maintain their existing technology preferences while still benefiting from Akamai's advanced security features.
As of the release date, the native connector has been adopted by over 100 Akamai customers, tasked with the analysis of more than 300,000 APIs, handling over half a trillion requests every month. The connector became generally available on October 1, 2024.
For additional details on Akamai's API Security capabilities and the new native connector, interested parties can visit the company's website.
This article is based on a press release statement from Akamai Technologies, Inc.
In other recent news, Akamai Technologies has achieved significant milestones. The company reported strong second quarter results for 2024, exceeding expectations and leading to an increase in overall guidance for revenue, EBITDA, and Non-GAAP EPS for the year. Akamai also acquired Noname Security, a leading API security company, for approximately $450 million, a move expected to enhance its capabilities in the API security domain.
On the environmental front, Akamai secured the ISO 14001 attestation for its environmental management system across the Akamai Connected Cloud. This certification indicates the company's commitment to minimizing its environmental impact and adhering to rigorous environmental performance standards.
Several analyst firms have adjusted their outlook on Akamai following these developments. Scotiabank maintained a positive outlook, reiterating a Sector Outperform rating. Other firms, including Citi, DA Davidson, RBC Capital, TD Cowen, and Guggenheim, also adjusted their price targets, reflecting confidence in Akamai's strategic direction and growth potential.
These are recent developments that highlight shifts in Akamai's strategic direction and growth potential in key business areas. While the company continues to navigate the dynamic tech landscape, these developments underline Akamai's commitment to both financial performance and environmental responsibility.
InvestingPro Insights
Akamai Technologies' recent introduction of the API Security integration with Akamai Connected Cloud aligns well with the company's strong financial position and market performance. According to InvestingPro data, Akamai boasts a market capitalization of $15.3 billion, reflecting its significant presence in the tech sector.
The company's focus on innovation and security solutions is supported by its solid financial metrics. Akamai reported a revenue of $3.93 billion in the last twelve months as of Q2 2024, with a healthy revenue growth of 7.26% over the same period. This growth trajectory suggests that Akamai's strategic initiatives, including the new API security feature, are resonating with customers and contributing to its top-line expansion.
InvestingPro Tips highlight that Akamai's management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, 19 analysts have revised their earnings upwards for the upcoming period, indicating positive sentiment about Akamai's financial performance.
The company's profitability is also noteworthy, with an adjusted operating income of $686.71 million and an operating income margin of 17.49% in the last twelve months. This demonstrates Akamai's ability to convert its revenue into profit effectively, which is crucial for funding ongoing innovation and security enhancements like the new API Security integration.
Investors may find Akamai's valuation attractive, as it's trading at a low P/E ratio relative to its near-term earnings growth. With a P/E ratio of 24.17 and a PEG ratio of 0.76, the stock appears to be reasonably priced considering its growth potential.
For those interested in delving deeper into Akamai's financial health and market position, InvestingPro offers additional tips and insights, with 6 more tips available for subscribers looking to make informed investment decisions.
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