MSFT - Akamai: Softening Business And Reduced Guidance

• Due to the company's softening business, reduced guidance, and the current macro investment environment, I am lowering my rating on AKAM from BUY to HOLD.
• While Q1's results were relatively "ok", the outlook for the rest of the year is cloudy and after being goosed by the pandemic, AKAM's CDN business will likely be flat.
• As I previously reported, AKAM's cybersecurity solutions will continue to be a bright spot and grew ~25% in Q1. Cybersecurity remains the primary investment theme in my opinion.
• However, in the short-term, FY22 guidance was reduced on headwinds from foreign exchange, the corporate tax rate, and Russia/Ukraine.

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