Akamai Technologies Stock Price Surges After Strong Earnings Report
Company Beats Analyst Expectations, Raises Guidance
Investors React Positively to Positive News
Akamai Technologies Inc. (AKAM) stock surged in after-hours trading on Tuesday after the company reported strong fourth-quarter earnings and raised its guidance for the year.
The company reported earnings per share of $1.35, beating analyst expectations of $1.28. Revenue for the quarter came in at $923 million, also ahead of estimates of $905 million.
Akamai also raised its guidance for the full year, now expecting earnings per share of $5.25 to $5.45, up from its previous guidance of $5.10 to $5.30. Revenue for the year is now expected to be in the range of $3.72 billion to $3.78 billion, up from the previous range of $3.67 billion to $3.73 billion.
Investors reacted positively to the news, sending Akamai shares up more than 5% in after-hours trading.
The strong earnings report is a sign that Akamai is continuing to benefit from the growing demand for cloud-based services. The company's content delivery network (CDN) is used by many of the world's largest websites and businesses to deliver content quickly and reliably.
Akamai's stock has been on a tear in recent months, rising more than 30% since the beginning of the year. The company's strong earnings report and raised guidance are likely to further boost investor confidence in the stock.
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