Strong FY 2020 Earnings Could Drive Akamai Stock To Early-2021 Highs

Strong FY 2020 Earnings Could Drive Akamai Stock To Early-2021 Highs

Share to Linkedin Up around 20% from its low in March 2020, we believe Akamai stock (NASDAQ: AKAM) has room for more than 20% upside to levels it reached in January 2021. The company's stock trades at $97 currently and is, in fact, down around 7% so far this year. Further, it traded at $102 in February 2020 - just before the outbreak of coronavirus - and is down 5% from that level, as well. Also, with the rise in online activity, the need for web server space will rise, leading to a surge in demand for Akamai's services. We believe that the stock has the potential to gain over 20% from its current levels, on the back of steady demand growth and strong full-year 2020 results. Our conclusion is based on our comparative analysis of AKAM stock performance during the current crisis with that during the 2008 recession in our interactive dashboard. We see AKAM stock declined from levels of around $22 in September 2008 (pre-crisis peak) to levels of around $18 in March 2009 (as the markets bottomed out), implying AKAM stock lost around 20% from its approximate pre-crisis peak. It recovered post the 2008 crisis, to levels