AKAM - Akamai slips after Q4 results Linode deal: Another M&A surprise' Citi says

Akamai Technologies (NASDAQ:AKAM) shares fell in premarket trading on Wednesday after the content delivery network provider posted fourth-quarter results that beat expectations and announced a deal to buy Linode for $900 million, which Citi called "another big M&A surprise." Analyst Fatima Boolani, who has a buy rating, but lowered his price target to $130 from $135, pointed out that the deal for Linode, which provides infrastructure-as-a-service (IaaS) platform, is the largest in Akamai's history and follows the Guardicore deal in September 2021 for $600 million.  "Combined with chunky large customer renewals seen pressuring near-term ETG performance (still negative), and a guided decel in the  STG “growth engine” amplifying organic growth fears, a much-needed improvement in sentiment appears challenged, likely gating a tangible recovery in shares," Boolani wrote in a note to investors. Akamai shares were down more than 5% in premarket trading on Wednesday to $105.35. In addition, the analyst noted

For further details see:

Akamai slips after Q4 results, Linode deal: Another M&A surprise,' Citi says