By Katherine Hamilton
Akamai Technologies shares slipped after the company said it expects revenue growth this year to be lower than Wall Street had anticipated.
The stock fell 15% to $83.81 Friday morning, hitting a 52-week low earlier in the session and on pace for its largest one-day percentage decline since 2017.
The cloud-computing and cybersecurity provider said late Thursday that it expects 2025 revenue at $4 billion to $4.2 billion, or a 2.7% increase at the midpoint--below the 6.8% climb to $4.26 billion that analysts polled by FactSet had predicted.
Akamai also said it expects 2025 adjusted earnings per share of $6 to $6.40, behind the $6.82 Wall Street had been forecasting.
The company expects headwinds from TikTok, which it said was its largest customer for content-delivery network services. The social-media platform is planning to move its content delivery internally, likely shaving off 1 to 2 percentage points of Akamai's revenue growth in 2025, D.A. Davidson analyst Rudy Kessinger said.
Akamai also plans to move about $50 million of its cloud-computing business to partners, which is expected to reduce revenue growth in that business to around 15%, down from 25% in 2024. The company said it wants to focus more on its core business.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
February 21, 2025 11:16 ET (16:16 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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