Akamai shares drop as memory supply crunch hits Q1 forecast
Shares of cloud firm Akamai Technologies AKAM.O slump 9.2% to $99.50 premarket
Co forecast Q1 adjusted profit below Wall Street estimates, citing higher costs from a persistent memory supply crunch
However, AKAM is benefiting from rising demand for security and compute services as businesses secure their apps and shift to cloud environments
Expects adjusted profit per share between $1.50 and $1.67 in Q1, below analysts' average estimate of $1.75
Morningstar analysts says demand for fast, low‑latency computing is likely to exceed supply over the next few years, making long‑term growth investments more important than protecting near‑term margins
For the fourth quarter ended December 31, co posted revenue of $1.10 billion, beating an estimate of $1.08 billion
26 analysts rate the stock "buy" on average; median PT is $105 - data compiled by LSEG
As of last close stock gained 25.6% YTD
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