Delivers internet content faster by placing servers inside ISP networks across 1,000-plus cities worldwide.
Akamai delivers internet content by placing its own servers physically inside ISP networks across 1,000-plus cities, which lets traffic reach end users without passing through the congested backbone routes that rivals using ordinary data centers cannot avoid. That inside-ISP positioning had to be assembled one peering agreement at a time with each autonomous system operator controlling a local last-mile connection — there is no way to buy those relationships in bulk, and the rack space inside carrier-neutral exchange points like DE-CIX Frankfurt and Equinix facilities is finite, so a new competitor cannot simply spend its way in. Once a customer is using the network, their application code has DNS CNAME records pointing directly at Akamai's edge servers, meaning switching providers is an engineering rewrite and full re-test, not a procurement decision. The whole structure would fracture in any jurisdiction that passes a data sovereignty law requiring local hosting, because forcing traffic onto sovereign-controlled routing paths destroys the peering topology that makes bypassing congestion possible in the first place.
How does this company make money?
Customers pay per gigabyte of data the company delivers on their behalf. They also pay a monthly fee for security services like DDoS protection. Companies that run computing tasks at the network's edge are billed based on how many compute cycles and how much bandwidth they consume.
What makes this company hard to replace?
Switching to a different CDN is not a simple procurement decision — it requires engineering work. Customer applications have DNS CNAME records hard-coded to point traffic at this company's specific edge servers, so redirecting to a rival means rewriting application code and re-testing every integration. On top of that, the traffic routing algorithms have been trained on years of data about each customer's specific content patterns, and a new provider would have to start that learning process from scratch.
What limits this company?
The racks inside carrier-neutral internet exchange points like DE-CIX Frankfurt and Equinix facilities are physically finite, and the tenants already inside hold long-term contracts on the best spots. Every time the company wants to expand into a new city, it has to negotiate a separate deal for whatever space remains — there is no way to buy that access in bulk or speed the process up.
What does this company depend on?
The company cannot operate without peering agreements with major ISPs like Verizon and AT&T, rack space leases at internet exchange points including DE-CIX Frankfurt and Equinix facilities, transit capacity from backbone providers, BGP routing table access from regional network operators, and reliable power and cooling at its distributed edge locations.
Who depends on this company?
E-commerce platforms like Shopify rely on it because page load delays beyond 3 seconds measurably cut checkout conversions. Live streaming services depend on it because any buffering causes viewers to leave immediately. Gaming companies need it because multiplayer games become unplayable when latency climbs above 150ms. Enterprise software companies rely on it because slow application response times directly hurt employee productivity.
How does this company scale?
Software — the traffic routing algorithms and the cached copies of content — can be copied onto servers in a new city at almost no extra cost. What does not scale easily is getting into that new city in the first place: each location requires its own facility access negotiation, power provisioning, and peering deal with the local ISP. Those steps cannot be automated or bought in bulk.
What external forces can significantly affect this company?
Data sovereignty laws like China's Cybersecurity Law can force local content hosting, which breaks the global routing model the company is built on. Submarine cable cuts caused by ship anchors or earthquakes push traffic onto slower overland paths. IPv4 address exhaustion is making it more expensive to secure the routing table positions the network depends on.
Where is this company structurally vulnerable?
If a government passes a rule like China's Cybersecurity Law — which requires content to be stored and served within that country's own borders — traffic in that jurisdiction gets forced onto state-controlled routing paths. That breaks the direct peering connections the whole system depends on, erasing the speed advantage in that region and punching a hole in the coordinated 1,000-city network.
Market Capitalization
15.77BUSD
vs all stocks (USD)
Mar 19, 2026
Trailing P/E
34.48x
vs Software Infrastructure peers
Mar 19, 2026
Revenue (TTM)
4.21BUSD
vs all stocks (USD)
Mar 19, 2026
Profit Margin
10.74%
vs Software Infrastructure peers
Mar 19, 2026
Beta
0.7040x
vs all stocks (USD)
Mar 19, 2026
52-Week Change
25.15%
vs all stocks (USD)
Mar 19, 2026
Market Capitalization
15.77BUSD
vs all stocks (USD)
Mar 19, 2026
Enterprise Value
19.77BUSD
vs all stocks (USD)
Mar 19, 2026
Trailing P/E
34.48x
vs Software Infrastructure peers
Mar 19, 2026
Gross Margin
58.67%
vs Software Infrastructure peers
Mar 19, 2026
Profit Margin
10.74%
vs Software Infrastructure peers
Mar 19, 2026
Operating Margin
13.82%
vs Software Infrastructure peers
Mar 19, 2026
Shares Outstanding
144.71MSharesMar 19, 2026
Float Shares
141.54MUSDMar 19, 2026
Shares Short
14.58MSharesMar 19, 2026
Short Ratio
2.86days
vs all stocks (USD)
Mar 19, 2026
Short % of Shares Outstanding
52-Week Low
67.51USDMar 19, 2026
52-Week High
113.50USDMar 19, 2026
52-Week Change
25.15%
vs all stocks (USD)
Mar 19, 2026
Beta
0.7040x
vs all stocks (USD)
Mar 19, 2026
Structural observations derived from financial data, industry benchmarks, and supply chain position.
Financial Health
Altman Z-Score: grey zoneSignificant
Altman Z-Score: 2.56
High earnings qualityNotable
Earnings Quality Score: 2.03
High structural barrier to entryNotable
Barrier to Entry: 1.18
Supply Chain
Downstream position: depends on 18 industries, supplies 5Notable
Outgoing: 5.00Incoming: 18.00
High connectivity hub: 23 industry connectionsNotable
cash-flow-compounderClose In Upper Portion Of Recent Range, Bollinger Bands, And RSInear-established-resistancesteady-uptrend-qualitylong-term-trend-qualitygrowth-compounder
cash-flow-compounderparabolic-extensionClose In Upper Portion Of Recent Range, Bollinger Bands, And RSIsteady-uptrend-qualitylong-term-trend-qualitygrowth-compounder